The idea of requiring motorists to pay to use the busiest streets in a city
a. has been proposed by many public officials, but to date the idea never has been tried in a major city anywhere in the world.
b. was tried in New York City in the 1990s, but the result was more — not less — congestion on busy streets, and the experiment was short-lived.
c. reflects the fact that a congested road is a public good.
d. reflects the fact that a congested road is a common resource.
d
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If business inventories equal $40 billion at the beginning of the year and $55 billion at the end of the year, then, assuming no other changes, GDP must have:
A. increased by $40 billion. B. increased by $15 billion. C. decreased by $15 billion. D. increased by $55 billion.
Refer to Figure 2-5. If the economy is currently producing at point Y, what is the opportunity cost of moving to point X?
A) 5 million tons of paper B) 19 million tons of steel C) 9 million tons of paper D) 5 million tons of steel
As output increases, diseconomies of scale
a. lead to rising long-run average costs b. lead to declining long-run average costs c. lead to rising short-run average total costs d. lead to declining short-run total cost e. means the law of diminishing marginal returns is affecting production
For a monopolist, as output expands, price and marginal revenue become more divergent (i.e., are farther apart)
a. True b. False