Paul Owns a Home on the Top of a Hill

question 11

Multiple Choice

Paul owns a home on the top of a hill and enjoys an unobstructed view of a large wooded area.The view was a large factor in his decision to buy the house and Paul values his view at $5000 per month.Sid purchases the undeveloped wooded area with plans to build a retail shopping centre.Sid expects to earn $10,000 a month from the shopping centre,which is $3000 more than his next best alternative.
-Refer to the information above.Suppose that Paul rejects the idea of either buying the undeveloped land or paying Sid not to develop the land,and successfully blocks Sid from developing the land by getting the zoning law changed.As a result,

• A) Paul's economic surplus will rise.
• B) Sid's economic surplus will rise.
• C) Paul's economic surplus is unchanged.
• D) Sid is no worse off.
• E) society is better off.

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Definitions:

Performance Standards

Established requirements or criteria used to measure the quality or level of products, services, and processes.

Prejudiced Comments

Remarks that are biased, discriminatory, or showing prejudice against individuals or groups.

Diversity

The existence of variations within a group, including differences in race, ethnicity, gender, age, sexual orientation, and other attributes.

Harassment

Unwanted, aggressive behavior towards another individual that involves a real or perceived power imbalance.