Which of the following is the best example of an action that imposes an external cost?
A. Wear and tear on your car as the result of frequent use.
B. Deterioration in the average quality of a house you own as the result of poor maintenance.
C. Water pollution from an upstream factory that increases the cost of providing clean water to downstream residents.
D. A rose garden on your property from which your neighbor gets much enjoyment.
Answer: C
Economics
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When the actual inflation rate turns out to be greater than the expected inflation rate, who gains—the borrower or the lender—and who loses? Explain why
What will be an ideal response?
Economics
The inflation tax is primarily a tax on
A) government bonds. B) Social Security recipients. C) money. D) real income.
Economics