Which of the following is a negative externality connected to automobile transportation?
A) Driving faster than the 65 mph speed limit is not allowed, even though individuals are able to do it, and many want to.
B) In an accident, a person who chooses not to wear a seatbelt becomes an object moving around the inside of the car, possibly hitting other, belted-in, passengers with lethal force.
C) Gasoline is taxed on a per-gallon basis.
D) Gasoline is imported, and thus increases the trade deficit.
E) While stuck in traffic, you have a chance to listen to your favorite CD, which you haven't had the time to do in other places.
B
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If people in Pottsville purchase 20 percent more pickles today than they did in 1980,even though the price of pickles has increased 40 percent since 1980, the demand for pickles in Pottsville
A) does not obey the law of demand. B) has changed since 1980. C) is relatively elastic. D) is relatively inelastic. E) is unit elastic.
Positive and negative externalities can lead to market failure
Indicate whether the statement is true or false
Suppose that in some tax year you earned a nominal interest rate of 6 percent. During the time you held these funds inflation was 1 percent. You compute that you made a real after-tax interest rate of 3 percent. What was your tax rate?
a. 40 percent. b. 33.3 percent. c. 25 percent. d. 50 percent.
When government corrects a market with an externality present by allowing participants to buy up to the point where their net benefit is zero, they must be:
A. offering a Coase tax. B. imposing a tax. C. imposing a tariff. D. mandating a quota.