You choose to get a flu shot each fall and your roommate chooses not to get a flu shot. For your roommate, you getting a flu shot is a
A) positive externality.
B) negative externality.
C) transactions cost.
D) property right.
A
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Over the last 100 years labor force participation by elderly males has fallen from over 2/3 to 1/5
Indicate whether the statement is true or false
As the price of the U.S. dollar increases in terms of foreign currency,
a. U.S. products become cheaper for foreigners b. foreign goods become cheaper for Americans c. dollars are worth less d. the U.S. demand for foreign exchange increases e. the supply of foreign exchange to U.S. markets decreases
Which of the following would be efficient from an economic perspective?
a. Reducing the crime rate to zero b. Changing speed limits and safety requirements so that there were no traffic fatalities or injuries each year. c. Completely eliminating the emission of greenhouse gases d. None of the above would be efficient from an economic perspective.
Anthony Downs, in The Economic Theory of Democracy, argues that voters choose to remain "rationally ignorant" when they vote in elections, knowing relatively little about the candidates or the issues. What economic principle would you invoke to explain this behavior?
a. public good theory b. moral hazard c. the cost of information d. risk aversion