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Match each of the following characteristics or scenarios with either the term negative externality or the term positive externality.

a. Over allocation of resources: (Click to select) Positive externality Negative externality.

b. Tammy installs a very nice front garden, raising the property values of all the other houses on her block: (Click to select) Negative externality Positive externality.

c. Market demand curves are too far to the left (too low): (Click to select) Positive externality Negative externality.

d. Under allocation of resources: (Click to select) Positive externality Negative externality.

e. Water pollution from a factory forces neighbors to buy water purifiers: (Click to select) Negative externality Positive externality.

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