Which of the following describes a positive externality?
A) The government imposes a tax on cigarettes in order to discourage smoking among teenagers.
B) People who do not attend college still benefit from others who receive a college education.
C) John Henry paints the outside of his house in order to increase its market value just before he puts the house up for sale.
D) Mary volunteers to drive her neighbor's children to soccer practice.
Question 2
Refer to Table 4-7. If a minimum wage of 11.50 an hour is mandated, what is the quantity of labor supplied?
A) 40,000 B) 570,000 C) 610,000 D) 1,180,000
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