Which of the following is NOT an example of an externality?
A) A cookie company emits a wonderful aroma in the air that makes people smile.
B) The neighbor's wind chimes interfere with your sleep.
C) A firm lays off 100 workers.
D) Cancer-causing chemicals are dumped into the drinking water supply of a city.
Answer: C
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If the expected inflation rate changes, the long-run Phillips curve ________, and the short-run Phillips curve ________
A) shifts rightward; shifts upward B) does not shift; shifts upward C) shifts rightward; shifts downward D) shifts rightward; does not shift E) does not shift; does not shift
In the above figure, the curve labeled a is the ________ curve and the curve labeled b is the ________ curve
A) marginal cost; marginal benefit B) marginal cost; trade line C) marginal benefit; trade line D) production possibilities frontier; trade line
The government budget constraint tells us that to the extent that government expenditures are NOT financed by tax collection, the public ends up holding ________ government bonds and ________ money
A) more, more B) more, less C) fewer, more D) fewer, less
One hypothesis to explain the changing gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers
a. True b. False Indicate whether the statement is true or false