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Author Question: Traffic congestion is an example of a negative externality because A) motorists take into account ... (Read 146 times)

Anajune7

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on: Jun 29, 2018
Traffic congestion is an example of a negative externality because
 
  A) motorists take into account all benefits while driving.
  B) motorists take into account all costs while driving.
  C) a motorist's cost of driving spills over and affects other motorists.
  D) a motorist's benefit from driving spills over and affects other motorists.

Question 2

Suppose Ed Sike, whom you've met in chapter 8, loses one of his 10 bills. What directly happens to GDP?
 
  A) It increases by ten dollars.
  B) It decreases by ten dollars.
  C) It decreases by more than ten dollars due to an unavoidable multiplier process.
  D) It remains unchanged.


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xMRAZ

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

D


Anajune7

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Reply #2 on: Jun 29, 2018
Thank you


xMRAZ

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Reply #3 on: Jun 29, 2018
No problemo


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