The rhinoceros has been hunted to the
brink of extinction because its horn is valued as an
aphrodisiac in the Orient. This situation is an example
the problem of signaling.
a public good.
the problem of the commons.
People who buy air conditioners rarely
consider the effects that the coolant in the air
conditioner will have on the ozone layer when the air
conditioner is eventually discarded. Ignoring this aspect
of the air conditioner causes:
a negative externality.