Which of the following is an example of a positive externality?
a. Smoking a cigarette
b. Driving a less fuel efficient vehicle
c. Setting up a chemicals factory in a residential area
d. Overuse of chemical fertilizers
e. Beekeepers keeping bees for honey
e
You might also like to view...
Economists normally
a. do not try to explain people's tastes, but they do try to explain what happens when tastes change. b. believe that they must be able to explain people's tastes in order to explain what happens when tastes change. c. do not believe that people's tastes determine demand, so they ignore the subject of tastes. d. incorporate tastes into economic models only to the extent that tastes determine whether pairs of goods are substitutes or complements.
When Hurricane Katrina hit the Gulf Coast of the United States in 2005 it destroyed 5,000,000 acres of timber. Given that lumber is timber that has been sawed or split into planks and boards, explain in terms of supply and/or demand how the hurricane
impacted each of the following markets (be sure to note the expected resulting impact on equilibrium price and quantity): a. Domestic lumber b. Imported lumber c. New home construction
What caused the major economic conflict between the North and the South immediately before the outbreak of the Civil War?
A. Agricultural development. B. Industrialization in the North. C. Trade barriers with England. D. All of the choices are true.
Which is most clearly a variable cost?
A. Rent B. Wages of Production Workers C. Salaries of employees under long-term contract D. Interest payments