Cindy discovers that when she goes to the beach, she does not have to bring her radio. She can put her blanket near someone who has a radio and listen all day (without having to carry her radio, get sand in her speakers, or buy new batteries). This is an example of:
A. private property abuse.
B. external costs.
C. a negative externality.
D. a positive externality.
Answer: D
You might also like to view...
A country cannot achieve economic growth with a limited base of natural resources.
Indicate whether the statement is true or false.
A mixed economy is one in which
a. a mixture of businesses exist and function. b. there is a mixture of public influence over government. c. government plays a dominant role, and private markets are secondary. d. there is some public influence over free markets.
If autonomous consumption rises by $40 and, as a result, Real GDP rises by $200, then the multiplier is
A. 4. B. 5. C. 6. D. 10. E. none of the above
The most common international poverty measure is:
A. the poorest 1 percent of income earners within a given country. B. the number of people living on less than $5 per day. C. the absolute poverty line, as defined by the U.S. Census Bureau. D. the number of people living on less than $1.90 per day.