1 if jane spends most of her money on her car then


Discuss the following:

1) If Jane spends most of her money on her car, then according to an economist which assumption should we make about this household.

2) Disneyland is a public good.

3) Public telephones are a public good/service.

4) Your neighbor has spent a lot of money improving his garden.

a) If you enjoy the view, then what type of a spillover is it?

b) If you hate the new noisy garden, then what type of a spillover is it?

5) In the circular flow, do rents go to firms or households?

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