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...
Economics is a:
A) social science that deals with making choices among alternatives. B) natural science that concerns itself with allocating relatively scarce resources among alternative ends. C) science that has no theories or models based on the scientific method. D) humanities course that mainly concerns itself with limited wants versus unlimited resources.
Which of the following addresses agency costs?
a. advertising for employee positions in as many outlets as possible b. hiring only from job fairs c. instituting longer work days d. replacing closed offices with cubical office spaces