Toll roads force people to pay to drive on that road. This is a solution to
A. externalities.
B. opportunity costs.
C. free riders.
D. negative incentives.
Answer: C
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Which of the following correctly identifies a Malthusian cycle?
A) Increase in GDP would increase GDP per capita above subsistence, which will cause an increase in the size of population which would increase pressure on resources and eventually reduce GDP per capita. B) Increase in GDP would increase GDP per capita above subsistence, which will cause a decrease in the size of population that would reduce pressure on resources and increase GDP per capita further. C) Decrease in GDP would decrease GDP per capita below subsistence, which will cause an increase in the size of population which would increase pressure on resources and eventually reduce GDP per capita. D) Increase in GDP would increase GDP per capita above subsistence, which will cause an increase in the size of population that would increase pressure on resources and that would further increase GDP per capita.
In the above figure, the shift in the demand curve from D to D2 can be the result of
A) an increase in the price of soda, a complement to pizza. B) a decrease in the supply of pizza that raises the price of pizza. C) an increase in income if pizza is a normal good. D) a change in quantity demanded. E) an increase in the price of a sub sandwich, a substitute for pizza.
A country undertakes a devaluation in order to
A) decrease its net exports. B) raise the value at which its currency is pegged. C) move to a flexible exchange rate system. D) increase its net exports.
What is a laissez-faire economy?
What will be an ideal response?