1. Confounding Variables

2. 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

3. 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

4. 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

5. 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

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