Statement I.If the owner of an office park plants shade trees on the grounds,she is not only providing private benefits,but external benefits as well.
Statement II.The federal government does virtually nothing to discourage companies from incurring external costs.

Question

Quizplus · Accepted Answer

Statement I is true because shade trees not only benefit the owner of the office park (private benefits) but also benefit the surrounding community by reducing heat, improving air quality, and providing aesthetic value (external benefits). Statement II is false because the federal government does have regulations and policies in place to discourage companies from incurring external costs, such as emissions standards, pollution taxes, and environmental impact assessments.