Question

what is a positive externality?
the benefits internalized by firms through property rights.
a situation where a third party benefits from a market transaction.
the measurable cost borne by third parties outside production.
a regulation ensuring firms internalize external costs.
a program where pollution permits are traded.
question 11
what are property rights?
laws specifying pollution reduction technologies.
a policy designed to internalize externalities.
the right of firms to trade pollution permits.
the legal framework for taxing pollution emissions.
legal ownership rights that others cannot infringe without compensation.
question 12
what are social costs?
the measurable costs of biodiversity loss.
the costs borne only by firms during production.
the taxes firms pay for emitting pollutants.
the expenses firms incur to meet regulatory standards.
costs including private costs and those incurred by third parties, like pollution costs.

Explanation:

• Positive externality: By definition, a positive externality occurs when a third - party benefits from a market transaction. For example, if a beekeeper's bees pollinate a neighbor's crops (a market transaction between the beekeeper and honey buyers), the neighbor (third - party) benefits.
• Property rights: Property rights are legal ownership rights. If someone has property rights over a resource (e.g., land), others cannot use it without compensation. This is a fundamental concept in economics for dealing with externalities (Coase theorem).
• Social costs: Social costs are the sum of private costs (costs borne by the firm in production) and external costs (costs borne by third - parties, like pollution costs).

Answer:

• For "What is a 'positive externality'?": A situation where a third party benefits from a market transaction.
• For "What are 'property rights'?": Legal ownership rights that others cannot infringe without compensation.
• For "What are'social costs'?": Costs including private costs and those incurred by third parties, like pollution costs.