A landlord rents his rat-infested apartment for $700 per month for a total of twelve months this year. What happens to GDP?
A) It increases by $8,400.
B) It increases by the difference between the rent charged and the price of any maintenance and repairs.
C) It decreases by $8,400.
D) Nothing.
A
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Discuss private-sector risks and the role government intervention has in improving economic efficiency
Please provide the best answer for the statement.
If pollution is bad, why do we still use pollution-causing resources such as coal and oil to generate electricity?
A) Governments lack the political will to enforce the use of pollution free resources. B) The cost of using pollution free resources to generate power in many circumstances is much higher than generating that same power through conventional pollution-causing means. C) Pollution is only a private cost. D) The transaction costs of pollution is too low.