1. Externalities Quiz Is it: a)Negative consumption externality b)Positive consumption externality c)Negative production externality d)Positive production externality A negative consumption externality is one that leads to external costs. Smoking is a consumption activity and results in costs being imposed on those other than just the people smoking (health costs etc). It is therefore a negative consumption externality.

2. Externalities Quiz Is it: a)Negative consumption externality b)Positive consumption externality c)Negative production externality d)Positive production externality This pollution is an external cost as the cost is borne by people other than the factory polluting. This means that pollution is a negative production externality.

3. Externalities Quiz Is it: a)Negative consumption externality b)Positive consumption externality c)Negative production externality d)Positive production externality This attractive sculpture in someone's garden will have external benefits as other can also enjoy it.

4. Externalities Quiz Is it: a)Negative consumption externality b)Positive consumption externality c)Negative production externality d)Positive production externality A negative consumption externality is one that leads to external costs. The external costs here are arising from the consumption activity of buying and using cars for transport.

5. Externalities Quiz Is it: a)Negative consumption externality b)Positive consumption externality c)Negative production externality d)Positive production externality The gasholder leads to an external cost for this house (and people passing by) and arises from a production activity.

6. Externalities Quiz Is it: a)Negative consumption externality b)Positive consumption externality c)Negative production externality d)Positive production externality Vaccination will lead to external benefits as it will protect other from catching diseases.