When a Driver Enters a Crowded Highway He Increases the Travel

question 14

True/False

When a driver enters a crowded highway he increases the travel times of all other drivers on the highway. This is an example of a negative externality.

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Definitions:

Labor Resource

Human work effort, both physical and mental, utilized in the creation of goods and services.

Linear Production

A production process in which outputs are directly proportional to inputs, with a constant rate of output per unit of input.

Possibility Frontier

Also known as the production possibility frontier, it represents the maximum possible output combinations of two goods or services an economy can achieve with available resources and technology.

Production Possibility

The combination of goods and services that can be produced given available resources and technology, illustrating the trade-offs in production.