London drivers who choose to drive in "congestion zones" pay a tax designed to reduce traffic congestion
a. True
b. False
Indicate whether the statement is true or false
True
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Autonomous expenditure is the portion of planned aggregate expenditure that
A. equals aggregate output. B. equals induced expenditure. C. equals planned spending. D. is independent of output.
The above table gives techniques that Fatz Confectionery can use to produce 2,000 pounds of candy. Which technique is technology inefficient?
A) A B) B C) C D) D
A tax imposed on the sellers of a good will lower the
a. price paid by buyers and lower the equilibrium quantity. b. price paid by buyers and raise the equilibrium quantity. c. effective price received by sellers and lower the equilibrium quantity. d. effective price received by sellers and raise the equilibrium quantity.
Which of the following is not an example of an adverse selection problem?
a. A homeowner purchases a refrigerator that the seller knows has a history of leaking. b. A highly productive worker quits her job after a salary cut knowing that she can make more at a different job. c. A major league baseball player performs poorly in his second season after signing a multi-million dollar contract. d. A contractor uses low quality materials for construction but charges for higher quality materials.