Question

68. Neighborhoods, condominiums and similar groupings of homes often have homeowner associations. These associations usually require homeowners to sign legally binding agreements that prevent them from certain behaviors, such as keeping farm animals as pets (horses and cows), running businesses out of their homes (think car repair), or parking their land yachts in their driveways. They do this because a. such behavior is thought to create an external benefit to others. b. such behavior raises the price for real estate in the neighborhood. C. such behavior is thought to create an external cost to others. d. such behavior influences the impressionable young toward bad behaviors. ANS

Answer 1

65) The correct option is c) The suppply curve for oil is inelastic because per - unit costs rise quickly when the quantity supplied increases.
With respect to price the demand of oil is also inelastic as the substitues for oil is few and it is also inelastic with respect to income.

57) The correct option is option d) All of the above
If a minimum wage is imposed in the labor market the demand for labor would increase, a surplus of labor would develop and the supply of labour would decrease.
The demand for labor would increase because there would be more people would want to work and are unemployed. Also the amount of labor will decrease there wil be moreunemployment.

40) The correct option is B) It includes the private cost but not the external cost.
Private cost is the cost that the consumer pays in the market for a commodity.
External cost is cost that the people pays.