Tammy Installed a Set of Wind Chimes in Her Backyard

question 50

Multiple Choice

Tammy installed a set of wind chimes in her backyard. She enjoys listening to the musical tones when the breeze hits them. Her neighbor Steven also enjoys the chimes, but her other neighbor Sally hates the constant noise. Tammy's wind chimes:

• A) create a negative externality for Steven and a positive externality for Sally.
• B) are not related to the issue of property rights since all parties are homeowners.
• C) are an example of an efficient market since the benefits to one party are balanced by costs to another party.
• D) are a public good because all three parties can hear the wind chimes.
• E) create a positive externality for Steven and a negative externality for Sally.

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Definitions:

Adolescence

The transitional developmental period between childhood and adulthood, characterized by significant physical, psychological, and social changes.

Moral Reasoning

The process of determining right or wrong in a given situation based on ethical principles.

Piaget

Swiss psychologist known for his pioneering work in child development and cognitive theory, emphasizing how children acquire knowledge and understanding.

Kohlberg

Refers to Lawrence Kohlberg, a psychologist known for his theory of moral development, which proposes stages through which individuals evolve ethically and morally.