A Noisy Party That Keeps Neighbors Awake Is an Example

question 187

Multiple Choice

A noisy party that keeps neighbors awake is an example of a

• A) negative production externality.
• B) positive production externality.
• C) negative consumption externality.
• D) positive consumption externality.
• E) Both answers B and C are correct.

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Definitions:

Classicals

Economic theorists and policy makers from the 18th and 19th centuries who focused on free markets, competition, and the ideas of self-regulating economies.

Keynes

An economist who revolutionized economic thinking with theories on government spending's effects on economic cycles.

Depression

A prolonged and severe downturn in economic activity, characterized by significant unemployment, declining output, and deflation.

Interest Rate

The component of a loan levied as interest to the borrower, usually characterized as an annual percentage of the outstanding loan value.