Noise Pollution Is a Serious Problem

question 27

Multiple Choice

Noise pollution is a serious problem. One major contributor is the recent development of very powerful amplification equipment for automobile radios. Many people complain that the windows in their home vibrate when some cars drive by. Others complain that loud car radios set off very sensitive alarms in nearby parked cars. What do we know about the drivers of cars with loud stereos?

• A) b, c, and e.
• B) It would be very expensive for them to engage in this behavior if individuals had a right to a nonvibrating home.
• C) The cost of their own hearing loss is less than the benefit they receive from cranking it up.
• D) They realize that there are no ordinances prohibiting loud noise.
• E) Their private costs fall short of the social costs.

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Definitions:

Nominal Rate

The stated interest rate of a loan or investment, before adjusting for compounding or inflation.

Compounded Quarterly

Interest calculation method where interest is added to the principal sum at the end of every quarter, thus earning interest on interest.

Compounded Nominal

Refers to the calculation of interest added to the principal amount of a deposit or loan based on both the initial principal and the accumulated interest from previous periods.

Triple

To increase or become three times as much in size, number, or amount.