As more people imported cars from abroad, service facilities became widely available. This increased the value of imported cars to those who owned one. This is an example of a(n) ________.
A) pecuniary externality
B) network externality
C) moral hazard
D) adverse selection
Question 2
If the marginal rent cost of moving from Apartment 1 to Apartment 2 is -60 and marginal commuting cost of moving from Apartment 1 to Apartment 2 is 40:
A) moving from Apartment 1 to 2 will cost the renter 60 more in rent and 40 more in commuting.
B) moving from Apartment 1 to 2 will save the renter 60 more in rent and 40 more in commuting.
C) moving from Apartment 1 to 2 will save the renter 60 in rent but cost 40 more in commuting.
D) moving from Apartment 1 to 2 will cost the renter 60 more in rent but save 40 in commuting.
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