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Dina Drives to Work on Interstate 294 at 90 MPH

Question 73

Multiple Choice

Dina drives to work on Interstate 294 at 90 MPH, well in excess of the 65 MPH speed limit. Sandy is behind her, going 85 MPH. A state trooper pulls Dina over and gives her a speeding ticket. Sandy continues driving. If Dina had not been speeding, the trooper would have ticketed Sandy. In terms of externalities, this story shows that


A) the 10 MPH difference defines the difference bewteen a negative and positive externality
B) Sandy enjoys a positive externality
C) Dina suffers a negative externality
D) Dina's driving habits created a negative externality for Sandy
E) Sandy's driving habits created a negative externality for Dina

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