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Author Question: Which of the following provides an example of an externality? a. The air pollution generated when ... (Read 32 times)

xclash

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on: Jun 30, 2018
Which of the following provides an example of an externality?
 a. The air pollution generated when you drive your car.
 b. The view that passersby and neighbors enjoy when observing your rose garden.
  c. The free concerts neighbors hear when an accomplished musician practices at home.
  d. All of the above.

Question 2

If a decrease in the growth rate of AD leads to a decrease in real GDP in the short run:
 a. the decrease in AD could have been correctly anticipated.
 b. the decrease in AD could have been than anticipated
 c. the decrease in AD would have been completely unanticipated.
  d. the decrease in AD could have been any of the above.


LVPMS

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

c


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