Suppose a farmer in Nebraska incurs $8,700 in crop damage from sparks that are created when a local railroad company sends trains along tracks bordering the farm. This damage can be best described as a:

a. negative externality.
b. positive externality.
c. transaction cost.
d. social benefit.


Ans: a. negative externality.

Economics

You might also like to view...

The only way governments can finance a deficit is by printing new money

Indicate whether the statement is true or false

Economics

Suppose India and France have the same PPF, shown in the figure above. Based on their current production points, which is France's most likely future PPF?

A) PPF2 B) PPF1 C) PPF0 D) either PPF0 or PPF1 E) None of the above because economic growth will not happen in India.

Economics

Economists have used ________ and ________ in experiments designed to determine whether consumers care about fairness when they make decisions

A) the income effect; the substitution effect B) Giffen goods; luxury goods C) network externalities; the endowment effect D) the ultimatum game; the dictator game

Economics

Monetarists argue that the relationship between the amount of money which households and businesses want to hold and the level of national income

A. has decreased historically because of increased accessibility to credit. B. rises during recession and falls during periods of full employment. C. falls during recession and rises during periods of full employment. D. is stable.

Economics