Millions of people wake up each morning, they get dressed and go to work by travelling on our nation's freeways early in the morning during rush hour
Why might this seemingly private activity actually result in a negative externality? Why might motorists not really worry about it very much?
Travelling during rush hour actually adds to the commute time of everyone else who is travelling at the same time. This is really a negative externality. The reason that most motorists are not likely to worry about it is because the amount of commuting time that they add to the rest or the public is likely to be very small.
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When government inefficiencies exist and government officials can be bribed, then
A) dead capital will not exist. B) the country will have positive economic growth. C) a bribe will increase the cost of investing in capital. D) property rights will be more secure since an official has been bribed to grant ownership to the business.
Positive economic analysis
A. involves value judgments. B. concerns what ought to happen. C. addresses factual issues. D. is subjective.
Figure 17-5
Refer to . If this country chooses to trade, the price of baskets in this country will be
a.
$10 and 40 baskets will be sold domestically.
b.
$10 and 105 baskets will be domestically.
c.
$7 and 70 baskets will be sold domestically.
d.
$7 and 40 baskets will be sold domestically.
Rent controls primarily benefit
A) property owners. B) people looking for rental units. C) builders. D) people who already occupy rental units.