A variable toll on a road in Washington reached a high during the evening rush hour of $5.75 . This toll bought the drivers who paid it a 27 minute time savings. Which of the following is correct?
a. For some consumers, the toll was less than the opportunity cost of the time they would have spent in traffic.
b. For some consumers, the toll was more than the opportunity cost of the time they would have spent in traffic.
c. No consumers would find this toll worth the time saved in traffic.
d. Both a and b are correct.
d
You might also like to view...
"If the marginal product of labor curve slopes downward, then the average product of labor curve necessarily must slope downward." Explain whether the previous statement is correct or incorrect?
What will be an ideal response?
Which of the following is a determinant of supply?
A) tastes and preferences of consumers B) technology C) consumer income D) number of consumers
The Second Theorem of Welfare Economics states that:
a. all Walrasian equilibria are also social welfare maxima. b. social welfare maxima will usually be Pareto inefficient. c. any social welfare maximum can be a Walrasian equilibrium with suitable transfers of initial endowments. d. all Pareto optimal allocations are social welfare maxima.
A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which of the following is not one of those propositions?
a. The United States should not restrict employers from outsourcing work to foreign countries. b. The United States should withdraw from the North American Free Trade Agreement (NAFTA). c. The United States should eliminate agricultural subsidies. d. Local and state governments should eliminate subsidies to professional sports franchises.