Millions of people wake up each morning, they get dressed and go ...

[KWilfred]

Millions of people wake up each morning, they get dressed and go to work by travelling on our nation's freeways early in the morning during rush hour.
 
  Why might this seemingly private activity actually result in a negative externality? Why might motorists not really worry about it very much?

Question 2

The core personal consumption expenditures price index excludes
 
  A) food and energy prices. B) energy and housing prices.
  C) food and housing prices. D) housing and health care prices.

[Ahnyah]

Answer to Question 1

Travelling during rush hour actually adds to the commute time of everyone else who is travelling at the same time. This is really a negative externality. The reason that most motorists are not likely to worry about it is because the amount of commuting time that they add to the rest or the public is likely to be very small.

Answer to Question 2

A

[KWilfred]

Gracias!

[jordangronback]

Great answer, keep it coming