Which of the following is not an example of a negative externality?
A. noise created by commercial aircraft
B. clearnup costs for an oil spill
C. a computer company's costs of raw materials
D. congestion and delays caused by traffic jams
Answer: C. a computer company's costs of raw materials
Explanation: A negative externality occurs when a person or firm making a decision would not have to pay the full cost of the decision. Thus the cost to society is higher than the cost consumer is paying for it. In this case the company would be paying s afull cost of raw materials
You might also like to view...
The nominal interest rate is 7% and the real interest rate is 2.75%. What is the inflation rate?
A) 3.75% B) 4.55% C) 4.25% D) 9.75%
Other things remaining the same, a decrease in the real return on bonds causes the velocity of money to:
a. Rise. b. Fall. c. Not change.
In general we can note that households with lower wealth tend to have a ________ MPC relative to wealthier households.
A. similar B. lower C. exactly equivalent D. higher
The slope and location of the demand curve depend on:
A) the number of buyers. B) production costs. C) the number of producers. D) all of the above.