Author Question: An example of a negative externality is: a. the benefit you receive when your neighbor installs a ... (Read 119 times)

jparksx · **on:** Jun 30, 2018

An example of a negative externality is:
a. the benefit you receive when your neighbor installs a smoke detector.
b. the reduction in profits for your company that occurs when there is a decrease in consumer demand for the product you manufacture.
c. the sleep you lose when your neighbor throws a loud party next door that keeps you awake.
d. the change in the property values of your neighbors' homes when you paint your house and landscape your front yard

Question 2

The expectation of a higher inflation rate will cause:
a. the short-run Phillips curve to become vertical.
b. the short-run Phillips curve to shift leftward.
c. a movement up along a short-run Phillips curve.
d. the short-run Phillips curve to shift rightward.