Question 1
If the production of a good generates external ________, the government could increase efficiency by ________ production of the good.
◦ benefits; taxing
◦ benefits; subsidizing
◦ costs; subsidizing
◦ costs; increasing
Question 2
You spend $150 every month planting flowers in your front yard. Your neighbor has told you that she derives $20 a month in enjoyment from being able to look at your beautiful flowers. Which of the following is
true?
◦ You are spending too much on flowers, because your neighbor derives only $20 worth of benefits.
◦ You should refuse to spend anything on flowers unless your neighbor pays you $20 a month.
◦ If you took into consideration the benefits your neighbor derived, the efficient level of flower planting would be greater than $150 a month.
◦ If you took into consideration the benefits your neighbor derived, the efficient level of flower planting would be less than $150 a month.
Trans-fat in Peanut Butter (Front)
The “Big Four” world leaders meet at the Hotel Crillon in Paris, 1919. From left to right (front row
Jan Brueghel the Elder, Flowers in a Blue Vase.
In middle childhood, children spend increasing amounts of time with peers and friends.
Formation of an Occluded Front