The decision to enter a freeway creates a. an externality in that it affects others on

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The decision to enter a freeway creates

a. an externality in that it affects others on the freeway.

b. an internality in that it affects others on the freeway.

c. a moral hazard in that no one knows why the person is on the freeway.

d. adverse selection because only the worst drivers will be on the freeway.

e. no ill effects.

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Fundamentals Of Economics

ISBN: 9780618992676

4th Edition

Authors: William Boyes , Michael Melvin

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