In Egypt, in 1970, the Aswan Dam was completed. By preventing the annual flood of the Nile (thereby providing millions of acres of arable land) and by providing electricity, the dam was expected to raise the living standard of the Egyptian people-and it has. However, it has also led to a rise in the water table which causes Egypt's limestone structures, including the pyramids, to absorb more salt
water and to suffer serious erosion from crystallized salts. Combined with air pollution and traffic vibration, this erosion is turning the pyramids to dust. Economists analyze this type of problem with the concept of
a. an externality.
b. the antiquity problem.
c. a free-rider problem.
d. the public good problem.
e. the trade-off between equity and output.
a
You might also like to view...
Cooperation in an economy characterized by extensive specialization requires
A) a rapid exchange of accurate information. B) flexible government controls. C) high unemployment to stem inflation. D) highly trained economists to "fine-tune" the economy. E) price controls.
What is the yield to maturity of a consol with a coupon of $85 and a price of $944.44?
A) 5.56% B) 8.50% C) 9.00% D) Not enough information has been provided to determine the answer.