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Bob Lives in a Residential Neighbourhood That Takes Pride on Well-Groomed

Question 72

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Bob lives in a residential neighbourhood that takes pride on well-groomed lawns.Bob's neighbours find that the marginal benefit of someone else's well-groomed lawn is $10.Bob,however,receives the same net benefit from an unkempt lawn as a well-groomed lawn: zero (an unkempt lawn looks bad but costs nothing;a well groomed lawn looks nice but is costly) . Bob lives in a residential neighbourhood that takes pride on well-groomed lawns.Bob's neighbours find that the marginal benefit of someone else's well-groomed lawn is $10.Bob,however,receives the same net benefit from an unkempt lawn as a well-groomed lawn: zero (an unkempt lawn looks bad but costs nothing;a well groomed lawn looks nice but is costly) .   -Refer to the information above.For Bob to have an unkempt lawn results in __________ because the total economic surplus is __________. A)  efficiency;non-negative B)  inefficiency;larger than it could have been C)  efficiency;the same in either case D)  inefficiency;smaller than it could have been E)  inefficiency;negative
-Refer to the information above.For Bob to have an unkempt lawn results in __________ because the total economic surplus is __________.


A) efficiency;non-negative
B) inefficiency;larger than it could have been
C) efficiency;the same in either case
D) inefficiency;smaller than it could have been
E) inefficiency;negative

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