Microsoft filed a lawsuit against people who sent spam (junk email) and a website owner who hosted spam services. A spokesman for Microsoft said that Microsoft was "trying to change the economics of spam" by increasing the cost of being a spammer. An economist most likely would agree with which statement about Microsoft's actions?
A. Microsoft's approach of trying to change the costs of spamming is the most efficient way to change behavior.
B. A more effective approach would be to educate spammers about the costs they impose on others.
C. Microsoft should not be involved because spamming is just part of the invisible hand at work and should be left alone.
D. A more effective approach would be to appeal to the morals of the spammers and tell them to follow the Golden Rule.
Answer: A
You might also like to view...
Medicaid is available to all over 65, including those not poor
Indicate whether the statement is true or false
Although monopoly has lower output than competition, the level of output is efficient.
Answer the following statement true (T) or false (F)
Externalities are the:
A.) Domestic economic impact of foreign events. B.) Difference between social and private costs or benefits. C.) Outside costs that producers absorb. D.) Effects of government actions on the private sector.
Monetarists argue that the Federal Reserve should allow the money supply to grow:
A. counter to the business cycles. B. faster than 10 percent annually. C. only during recessions. D. at a constant rate.