Confounding Variables

I) Negative Externalities A) A cost passed on to others outside the market system. B) Air pollution/Noise pollution C) If the consumer isn’t paying for the cost/ someone else is

II) Positive Externalities A) a benefit passed on to others as a by- product of some action B) Aesthetics/Public transportation/Public Education/Public Health

III) Collusion A) Producers reduce competition B) All agree to sell at an artificially high price C) Consumers must buy at an above market price

IV) Boycott/Monopsony A) Consumers reduce competition B) All agree not to buy above a certain price C) Producers must sell at a below market price

V) Free Riders A) Public contributions cannot be voluntary B) Individuals would take advantage & not contribute C) Governments must tax all individuals