Suppose Two Neighborhoods (A AndB)have Identical Housing,but Neighborhood a Has

question 122

Multiple Choice

Suppose two neighborhoods (A andB) have identical housing,but neighborhood A has a strictly enforced deed restriction that prohibits homeowners from parking junk cars in the front yard.If houses in neighborhood A sell for $105,000 and houses in neighborhood B sell for $100,000,how would an economist value the external cost of visible junk cars,per house?

• A) $205,000
• B) $105,000
• C) $100,000
• D) $5,000
• E) None of the above answers is correct.

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Definitions:

Prefrontal Area

A region in the frontal lobe of the brain, implicated in a variety of complex behaviors, including planning, and greatly contributes to personality development.

Auditory Association

Areas in the brain involved in processing and interpreting sounds, including understanding speech and recognizing music.

Wernicke Area

The Wernicke Area is a region of the brain that is important for language development and comprehension, located in the posterior section of the temporal lobe.

Broca Area

The Broca area is a region in the frontal lobe of the dominant cerebral hemisphere associated with speech production and language processing.