An example of a negative externality is the:

A. cost you bear when your neighbor has a noisy party and does not compensate you for your discomfort.
B. decrease in income to farmers that results from a drought.
C. benefit you receive without paying when your neighbor installs a smoke detector.
D. decrease in your real income that results when photographic equipment you purchase increases in price because of increased demand by others for these items.


Answer: A

Economics

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A bond issuer agrees to pay a stated nominal amount each year. An increase in the nominal interest rate will cause

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A drop in dollar price of British pounds means that

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Economics