The commons problem arises because a. social cost equals private cost and property rights are missing. b. social benefit equals private benefit and property rights are missing. c. social and private incentives are not aligned and property rights are missing. d. firms don't maximize profits.

Which of the following tends to result in a decrease in the selling price of houses in an area? a. an increase in the population of the city or town. b. an increase in the labor costs of construction. c. an increase in the income of new residents in the city or town. d. an increase in mortgage interest rates.