Using prices to promote efficiency in the utilization of bridges,
A. higher prices should be charged for the use of the most crowded bridges.
B. lower prices should be charged for the use of the uncrowded bridges.
C. traffic would be equalized among the bridges where space is a scarce resource.
D. All of the responses are correct.
Answer: D
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A) can't be provided exclusively to the people who pay for them. B) cease to be scarce. C) produced by government are provided to everyone. D) supplied by the private sector are paid for from tax revenue. E) wanted by everyone are priced too low.
A teacher tells her students that she will give them a riddle that each student has to solve separately and then announce his or her answer in the class. Those who get the correct answer will get a gift
Kate, a student in the class, decides to give the answer that most students give, although the answer she gets from solving the riddle is quite different. This is an example of ________. A) adverse selection B) moral hazard C) a pecuniary externality D) an information cascade
Foreign portfolio investment occurs when an individual or firm buys stock or bonds issued in another country
Indicate whether the statement is true or false
A monopoly firm's demand curve
A) is more inelastic than the demand curve for the product. B) is inelastic at high prices and elastic at lower prices. C) is perfectly inelastic. D) is the same as the market demand curve.