Real World Graduation, Question 64: Economic Consequences

RealWorldGraduation_Question_64_EconomicConsequences   <– PDF

A local neighborhood gang threw a party, and in the course of having a good time, smashed 1000 beer bottles all over a residential street. The gang members all left the area before the cops showed up, and none were arrested or charged.  The beer had been purchased at a local store, the gang members all paid a deposit to the store on the beer bottles that they subsequently broke.  No matter what you think about parties, or beer, or about gangs in general, consider this action in the economic sense.  In what economic sense did the gang members indirectly perform the most useful economic service?

a) The store that was paid the deposit on the beer bottles gets to keep the deposit paid by the gang members.

b) It is possible that some people will make money when they are paid to clean up the broken beer bottles.

c) Broken beer bottles are a true sign of urban life, and will probably increase the partying type of tourism in that area.

d) Some people will run over the beer bottles and get flat tires, which have to be replaced, which will cause those who manufacture, sell, and install tires will earn money.

e) Some combination of a) and d).

(The answer is on p. 2 of the PDF.)

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