A person's car gets a flat tire, creating an inconvenience that affects only them. They pay a service to have the tire replaced. In economic terms, which of the following situations is most analogous to the flat tire?

Identifying Economic Bads

Applying the Concept of a Private Bad

Widespread air pollution from a single factory that lowers the air quality for an entire city is an example of a private bad because the negative effects originate from a single, identifiable source.

Match each scenario with the economic term that best describes it.

An undesirable economic condition whose negative effects are confined to a specific individual or a very small group, such as a leaky faucet in a single apartment, is known as a ____.

Differentiating Economic Problems

Analysis of an Economic Nuisance

An economics instructor is looking for the clearest example to demonstrate a situation where an undesirable condition's negative effects are confined to a specific, small group or individual. Which of the following scenarios best exemplifies this concept?

Distinguishing the Scope of Economic Nuisances

Widespread air pollution from a single factory that lowers the air quality for an entire city is an example of a private bad because the negative effects originate from a single, identifiable source.