Christen Who Just Turned Eighteen Is Out with Several Friends

question 7

Essay

Christen who just turned eighteen is out with several friends.They decide to see a movie,but it is sold out.Christen hid in the back of the theatre and yelled "Fire" as loudly as she could.Everyone ran out of the theatre,and a number got in their vehicles and left.Christen and her friends thought that seeing the movie was now possible.Unfortunately,a theatre employee saw Christen yelling,called the police,and she was arrested.Christen told the police officers that she was only exercising her free speech rights.She also told the police that the theatre employee lied and that she personally saw him stealing popcorn.The theatre employee told Christen that he was going to sue for defamation,and she told him that she would win based on her right to free speech.Discuss whether Christen is right on one or both counts and why.

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Definitions:

Positive Externalities

Benefits that are enjoyed by a third-party or the society at large as a result of an economic transaction, but these benefits are not reflected in the market price.

Resource Problem

The economic issue of having limited resources to satisfy unlimited wants and needs, necessitating choices and priorities in allocation.

Positive Externalities

Benefits experienced by third parties who are not directly involved in the production or consumption of a good or service.

Moral Hazard Problem

A situation where one party engages in risky behavior knowing that it is protected against the consequences by another party.