Multiple Choice
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?
A) You are spending too much on flowers, because your neighbor derives only $20 worth of benefits.
B) You should refuse to spend anything on flowers unless your neighbor pays you $20 a month.
C) If you took into consideration the benefits your neighbor derived, the efficient level of flower planting would be greater than $150 a month.
D) If you took into consideration the benefits your neighbor derived, the efficient level of flower planting would be less than $150 a month.
Correct Answer:

Verified
Correct Answer:
Verified
Q222: A central concern about common resources is<br>A)
Q223: The optimal level of provision of _
Q224: A negative externality exists when the actions
Q225: An example of _ is a power
Q226: Once a public good is produced, everyone<br>A)
Q228: Externalities involve the imposition of costs or
Q229: Refer to the information provided in Figure
Q230: A common resource is<br>A) excludable and rival
Q231: Refer to Scenario 16.1 below to answer
Q232: Refer to the data provided in