To efficiently manage traffic on a system of bridges,
a. the more-crowded bridges should have lower tolls, so that they are affordable.
b. the tolls should be equal for all bridges, so that people can choose the most convenient routes.
c. tolls should be higher on more-crowded bridges and lower on less-crowded bridges.
d. there should be no tolls on bridges, because people should not have to pay to drive to their jobs.
c
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When floods wiped out the banana crop in Central America, the equili-brium price of bananas ________ and the equilibrium quantity of bananas ________
A. rose; increased B. rose; decreased C. fell; increased D. fell; decreased
Long-run aggregate supply shocks are not a source of business cycle fluctuations in the ________, because ________
A) traditional Keynesian model; long-run supply shocks are incompatible with adaptive expectations B) traditional Keynesian model; demand fluctuations are considered of dominant importance C) real business cycle model; shocks cannot persist in the long run, when prices and wages are flexible D) new Keynesian model; such shocks are anticipated by forward-looking consumers and firms
Relative to a perfectly competitive market, as long as the monopolist does not benefit from substantial economies of scale,
a. price and quantity are higher under monopoly b. price and quantity are lower under monopoly c. quantity is higher and price is lower under monopoly d. quantity is lower and price is higher under monopoly e. there are no differences in price and quantity
If autonomous consumption is greater than zero and the marginal propensity to consume is greater than zero, but less than one, the consumption function will first be below and then above the 45 degree line
a. True b. False Indicate whether the statement is true or false