Suppose there are two parallel highways between two cities with approximately equal traffic. What would you expect to happen if the state began charging tolls to drive on one of those highways?
A. Traffic would decrease on both roads.
B. More drivers would drive on the non-toll road, making the toll road less congested.
C. More drivers would drive on the toll road making the non-toll road less congested.
D. Traffic would remain evenly divided between the two roads as drivers continuously sought the less-congested route.
Answer: B
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In the circular flow model with the government sector, transfers
A) flow only through the goods market. B) flow in the same direction as do taxes. C) flow in the opposite direction as do taxes. D) to firms flow in the same direction as do rent, wages, interest, and profits. E) to households flow in the same direction as do expenditures on goods and services.
Japan has a single-payer health care system in which the government provides national health insurance to all Japanese residents
Indicate whether the statement is true or false
According to the text, economists consider full employment to occur when
A) the sum of frictional unemployment and structural unemployment equals zero. B) the unemployment rate consists of only frictional and structural unemployment. C) frictional unemployment equals zero. D) everyone who wants a job has a job.
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, they will pick Q equal to a. 0 b. 10 c. 25 d. 70