Your Neighbor Has Just Planted Some Fragrant Flowers

question 104

Multiple Choice

Your neighbor has just planted some fragrant flowers. The wonderful scent drifts into your room and makes you happy.

• A) This scent is an internal cost to you.
• B) This cannot be an externality since you are enjoying the scent.
• C) This is an externality since you get a benefit from your neighbor's flowers.
• D) The social cost of this activity is entirely borne by you neighbor.

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Definitions:

Parameter v

In statistics, it can refer to a parameter associated with a specific distribution or model, often used to denote degrees of freedom in certain distributions.

Variance V(t)

A statistical measure of the dispersion of a set of data points in a data series around the mean, denoted as V(t) when considering time-series data.

Number

A mathematical object used to count, measure, and label; the basic concept of numbers includes integers, real numbers, and complex numbers.

Normal Distribution

A balanced probability distribution centered around the mean, where data closer to the mean are seen more frequently than data considerably far from the mean.