Question

In considering the decision to adopt a dog, indicate which of the following is an example of a private cost, a private benefit, an external cost, and an external benefit that may result from the decision: The food for the dog is . The dog discouraging intruders and trespassers from the neighborhood is . The enjoyment from a new companion is . Barking disturbing the neighbors' sleep is .

Answer 1

Answer:1. private cost  2. external benefit  3. private benefit 4. external cost

Explanation:

The food for the dog is a Private Cost

The dog discouraging intruders and trespassers the neighborhood is an External Benefit.

The enjoyment from a new companion is a Private Benefit

Barking disturbing the neighbors' sleep is  an External Cost

Answer 2

Answer:

The food for the dog is ⇒ PRIVATE COST because it is paid by the owner and doesn't affect third parties.

The dog discouraging intruders and trespassers the neighborhood is ⇒  EXTERNAL BENEFIT (POSITIVE EXTERNALITY) because positive effects arise on third parties.

The enjoyment from a new companion is ⇒  PRIVATE BENEFIT because the benefits are enjoyed only by the owner.

Barking disturbing the neighbors' sleep is ⇒  EXTERNAL COST (OR NEGATIVE EXTERNALITY) because negative effects arise on third parties.