As more people started building houses in your community, more street lights were installed in your locality making it safer and easier to drive through. This is an example of a(n) ________
A) pecuniary externality
B) network externality
C) moral hazard
D) adverse selection
B
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Consumers in a country buy only two goods, pens and CDs. The prices and quantities purchased by urban households are in the table above. The reference base year is 2011. If the current year is 2012, the cost of the CPI market basket in 2012 is
A) $3,400. B) $3,508. C) $3,580. D) $3,500. E) $3,588.
What fundamental problem does the New Keynesian model have, when compared to the data?
A) Investment fluctuates more than consumption. B) The real wage moves too little. C) Aggregate output demand does not matter. D) Prices do not fluctuate in the right way.
The market clearing price of a good is
A) the price at which there is at least some of the good available for everyone. B) the price at which there is no surplus and no shortage. C) the price that consumers prefer. D) the price that producers prefer.
Per capita GDP is a measure of the dollar value of output produced by an average worker in one hour
a. True b. False Indicate whether the statement is true or false