Economic dilemma from school?
So.. what is it in economic terms? What is this situation called in economic terms?
Any help is greatly appreciated. Thanks!
Answer:
I would classify it as a positive or a negative externality positive externality if the neighbour finds the music pleasant and negative if he finds it unpleasant. If its negative it counts as noise pollution if positive it has the same effect as someone having a nice garden that you take pleasure from looking at.
electrically configured.
getting a free ride if the music is through a loud speaker. if its on headphones then the neighbor cant hear thus no benefit well maybe the lack of sound is good enough for them already.
If the neighbor likes the music, it is a positive externality. If hte neighbor does not like it, it is a negative externality.
i think u are refferring to the 'free rider' effect
For instance, local milk farmers benefit from international milk conglomorates recent ourtpouring of TV commercials.
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