10.
Which of these consumption activities will most likely impose an external cost?
a.
An executive plays a vigorous game of golf.
b.
A student in a dorm plays her CDs at 120 decibels late at night.
c.
A young mother exercises to an aerobics video.
d.
A construction worker eats a sandwich during his lunch break.
they distort prices and thus the decisions of households and firms.
only if the family is not in economic competition with other families.
d.
All of the above are correct.
e.
Both a and b are correct.