Which of the following is not an example of an externality?
a. Drunk drivers raise everyone's auto insurance premiums.
b. The price of lumber increases as lumberjacks' wages increase.
c. The neighbor's beautiful front yard increases your home value.
d. Someone drives a car that emits thick black smoke.
e. People who live near a bakery enjoy the smell of freshly baked bread.
B
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The major change in American labor markets this century is
A) the steady rise of the unemployment rate. B) the steady rise of the employment rate. C) the increase in the labor-force participation rate. D) the increase in the female labor-force participation rate.
Many people do NOT fully insure against risk because
A) they are risk averse. B) the insurance companies are all crooks. C) the insurance offered is less than fair. D) the insurance offered is more than fair.
Dynamic tax analysis assumes
A) all of the present tax rates will be in place for a minimum of twenty years. B) changes in the tax rates have no effect on the tax base. C) changes in the tax rates have no effect on tax revenue. D) changes in the tax rates will change the tax base.
Which of the following would not cause any kind of an outward shift of a nation's production possibilities curve [PPC]?
a. An improvement in the general level of education b. Technological innovation c. Discovery of a new source of energy d. An increase in the size of the labor force e. A flood that renders thousands of acres of farmland unusable