Buying sandwich and eating it for lunch is least likely to give rise external cost or benefit.
Getting a flu shot before flu season give rise to external benefit.
driving one's car during rush hour give rise to external cost.
spraying to control mosquitos in your backyard give rise to external benefit.
Answer: Option (D)
Note:external cost means affecting the people negatively other than buyers and sellers due to an activity.
external benefit means affecting the people positively other than buyers and sellers due to an activity
9. 9 Which of the following activities is least likely to give rise to external costs...
Economists use the word equity to describe a situation in which Question 9 options: 1) each member of society has the same income 2) those in society who have the least will receive the most 3) the benefits of society's resources are distributed fairly among society's members 4) society is getting the most it can from its scarce resources Productivity is defined as the 1) amount of labor which can be saved by replacing workers with machines 2) number of...
show all calculations and do all parts of the question. Externalities II [Warning, this problem is an enhanced version of a negative externality problem. While I break it down into a series of short steps, it still may take a long time to figure out. Budget accordingly. Don’t skimp on your graph. Your picture will hopefully help you understand what is going on.] High levels of automobile traffic in big cities are incredibly costly to society. Time spent idling in...
Externalities II [Warning, this problem is an enhanced version of a negative externality problem. While I break it down into a series of short steps, it still may take a long time to figure out. Budget accordingly. Don’t skimp on your graph. Your picture will hopefully help you understand what is going on.] High levels of automobile traffic in big cities are incredibly costly to society. Time spent idling in a car is time that could probably have been spent...