Which of the following is an example of a negative externality?
a. planting flowers in your front yard
b. talking loudly when others are trying to study economics
c. people donating money to charity
d. the price of bread increases
e. denting your neighbor's car fender while backing out of your driveway
B
You might also like to view...
When a union faces a monopsony buyer, a ________ exists
A) dual-monopoly B) monopoly C) bilateral monopoly D) monopolistic monopsony
What do many economists see finance companies as having an advantage in?
A) purchasing commercial paper B) selling long-term securities C) monitoring the value of collateral D) charging consumers particularly low interest rates
In order to increase society's total welfarer, a production process that produces a negative externality should be
a. taxed b. provided by the government c. ignored d. subsidized e. exported
Inflation
a. causes people to spend more time reducing money balances. When inflation is unexpectedly high it redistributes wealth from lenders to borrowers. b. causes people to spend more time reducing money balances. When inflation is unexpectedly high it redistributes wealth from borrowers to lenders. c. causes people to spend less time reducing money balances. When inflation is unexpectedly high it redistributes wealth from lenders to borrowers. d. causes people to spend less time reducing money balances. When inflation is unexpectedly high it redistributes wealth from borrowers to lenders.