Author Question: As more people started building houses in your community, more street lights were installed in your ... (Read 117 times)

pane00 · **on:** Jun 29, 2018

As more people started building houses in your community, more street lights were installed in your locality making it safer and easier to drive through. This is an example of a(n) ________.

A) pecuniary externality
B) network externality
C) moral hazard
D) adverse selection

Question 2

If employers were required by law to increase the wages paid to secretaries by 40 percent, which consequence could we most confidently predict?

A) More secretaries would be employed.
B) Secretaries would begin to earn more than they are worth to their employers.
C) The marginal value of secretaries would increase by about 40 percent.
D) The total amount of wages paid to secretaries would decrease.
E) The total amount of wages paid to secretaries would increase.