Is the airport a negative externality? A) No, the airport was there first.
B) No, if the original property values reflect the costs imposed by the airport.
C) No, airports are government entities and therefore don’t impose costs on individuals.
D) Yes, the airport’s noise should be curtailed for the well-being of the homeowners.
ANSWER:
B) No, if the original property values reflect the costs imposed by the airport.