Suppose your university decides to increase parking fees in order to deal with the shortage of parking spaces. Nevertheless, the president of your student body convinces the university to pay back the amount spent on higher parking fees to students in the form of a rebate at the end of the school year. Therefore, the increase in parking fees will
A. not solve the parking shortage.
B. will have no effect since it will be offset entirely by the rebate.
C. make the parking shortage even worse.
D. reduce demand for parking and hence alleviate the parking shortage.
Answer: D
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The health services market differs from many others in that, because of insurance, the consumer often pays only a fraction of the direct cost of care
a. True b. False Indicate whether the statement is true or false
Economists often say that trade is a win-win situation. How do you justify this?
In the United States, the class system is a:
A. triangle, and in most developing countries the class system is a diamond. B. pentagon, and in most developing countries the class system is a diamond. C. pentagon, and in most developing countries the class system is a triangle. D. triangle, and in most developing countries the class system is a triangle.
Exhibit 14A-1 Aggregate demand and supply model
?Beginning from short-run equilibrium at point E2 in Exhibit 10A-1, the economy's movement to a new position of long-run equilibrium would best be described as:
A. ?a movement along the AD2 curve with a shift in the SRAS1 curve. B. ?a movement along the SRAS2 curve with a shift in the AD2 curve. C. ? a shift in the LRAS curve to an intersection at E1. D. ?no shift of any kind.