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 freshly baked bread.
B
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If the euro–pound exchange rate increased from €1.1 per pound in 2009 to €1.27 per pound in 2012, it implies a depreciation in the value of the pound from 2009 to 2012
a. True b. False Indicate whether the statement is true or false
Supply-side economists contend that the system of taxation in the United States:
A. Creates incentives to save and invest B. Creates dis-incentives to work C. Generates maximum tax revenue D. Reduces the effects of cost-push inflation