Which of the following purported externalities in fact does not distort the allocation of resources?
I.An individual's unwillingness to cut his or her own lawn in an otherwise immaculately kept neighborhood.
II.Smoke produced by a new firm in an area which raises the costs of other firms.
III.A new firm's bidding up skilled wages in an area,thereby raising costs of other firms.
IV.An individual's unwillingness to obtain job training,thereby lowering the total GNP.
Possible choices:

Question

Quizplus · Accepted Answer

The Answer of Which of the following purported externalities in fact does not distort the allocation of resources?
I.An individual's unwillingness to cut his or her own lawn in an otherwise immaculately kept neighborhood.
II.Smoke produced by a new firm in an area which raises the costs of other firms.
III.A new firm's bidding up skilled wages in an area,thereby raising costs of other firms.
IV.An individual's unwillingness to obtain job training,thereby lowering the total GNP.
Possible choices:

Which of the Following Purported Externalities in Fact Does Not