Which of the following is not an example of an externality?
a. Drunk drivers raise everyone's auto insurance premiums.
b. The price of lumber increases as lumberjacks' wages increase.
c. The neighbor's beautiful front yard increases your home value.
d. Someone drives a car that emits thick black smoke.
e. People who live near a bakery enjoy the smell of baked bread.
b
You might also like to view...
In a prisoners' dilemma game, which of the following strategies gives the best outcome for both prisoners?
A) Both deny (collusion). B) Both confess (not collude). C) One confesses while the other denies. D) none of the above
Which one of the following is NOT a characteristic of public goods?
A) They are indivisible. B) It is difficult to charge people on the basis of how much they use. C) Public goods can be used by increasing numbers of people at no additional cost. D) Public goods are subject to the principle of rival consumption.
In which of the following cases would the quantity of money demanded be smallest?
a. r = 0.06, P = 1.2 b. r = 0.05, P = 1.0 c. r = 0.04, P = 1.2 d. r = 0.06, P = 1.0
What is a market surplus, and how does the market attempt to resolve a surplus?
What will be an ideal response?