My roommate ________. This is an example of an external benefit.
A. smokes cigars in the kitchen whenever I make dinner
B. cleans up after his dog and keeps it from eating my ferrets
C. sings (badly) in my presence
D. plays the drums whenever I am home
Answer: B
You might also like to view...
Which of the following explains why purchasing power parity does not completely explain long-run fluctuations in exchange rates?
A) Most countries do not impose barriers to trade. B) Some goods and services produced in any country are not traded internationally. C) Consumer preferences for goods and services across countries are very similar. D) Most countries have free markets with little, if any, government regulation.
When a moral hazard problem exists for automobile driving, the marginal cost of driving
A) is lowered, and the amount of driving done is raised above the efficient level. B) is lowered, and the amount of driving done is lowered below the efficient level. C) is raised, and the amount of driving done is raised above the efficient level. D) is raised, and the amount of driving done is lowered below the efficient level. E) is raised above the efficient level, but market forces keep the total amount of driving is kept at the efficient level.
If personal taxes are increased by $10 billion, we can expect that consumers will reduce
a. spending by $10 billion. b. spending by more than $10 billion. c. spending by less than $10 billion. d. saving by $10 billion. e. saving by more than $10 billion.
Suppose that the elasticity of demand for a product is 2.0. What will happen to total revenue as a firm increases the price?
A. Total revenue will increase. B. Total revenue will decrease. C. Total revenue will stay the same. D. It cannot be determined from the information provided.