Which of the following episodes would most likely contain an ...

[sam.t96]

Which of the following episodes would most likely contain an externality?
 
  A) You cannot afford to buy groceries.
  B) You decide to grow your own vegetables in your backyard where no one else can see them.
  C) You decide to grow flowers in your front yard where everyone else can see them.
  D) You eat all the vegetables you grow yourself.

Question 2

Pam buys only thread and fabric, and she buys the quantities that maximize her utility. Her marginal utility from a spool of thread is 30 units and her marginal utility from a yard of fabric is 60 units.
 
  If the price of a spool of thread is 4, then you are sure that the price of a yard of fabric is ________. A) 4
  B) 2
  C) 8
  D) 12

[bimper21]

Answer to Question 1

C

Answer to Question 2

C