Negative externalities are created when
A) an increase in the price of butterfat drives up the price of ice cream.
B) a driver leaves his car in a parking space after the meter expires and receives a ticket.
C) a driver drives recklessly on a busy highway.
D) a driver pulls over to help a stranded motorist fix a flat tire.
C
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The objects that we use as money today are
A) checks and credit cards. B) currency and checks. C) currency and deposits. D) deposits and checks. E) currency, deposits, and gold.
Institutions are
A) the same thing as organizations. B) associations of individuals or groups. C) always embodied in a written set of rules. D) a set of rules governing behavior, whether written or not. E) only relevant on international issues.
Who most clearly gains from a tariff on imports?
a. Consumers in the importing country b. Producers in the exporting country c. The government in the exporting country d. Producers in the importing country
Compared to the private sector, the distinguishing characteristic of government is its
A) ability to produce goods and services that people value. B) monopoly on the legitimate use of force on adults. C) ability to escape the constraints imposed by scarcity. D) ability to consider the benefits of an action as well as its costs.