Suppose the government in a certain country wants to reduce urban sprawl
What measures could it take to ensure that people choose to live closer to the central business district? (Urban sprawl refers to the development of residential and commercial areas in the suburbs around the periphery of a city. One of the main problems with urban sprawl is that it leads to increased traffic congestion and air pollution as commuters travel to the city every day.)
The government could try to influence an individual's choice of where to live by changing the direct and indirect costs of living in the city and in the suburbs. The direct costs include the rental price of housing and the cost of commuting. The indirect cost includes the opportunity cost of the time that is spent commuting. If the government wants more people to live in the city, it needs to increase the costs of living away from the city and/or reduce the costs of living in the city. Some of the ways in which this can be done are listed below:
i. If taxes are imposed on traffic that is moving in and out of the city, the costs of commuting will increase. People may instead look for apartments within the city.
ii. A change in land use regulations may allow more apartments to be built in the city, lowering the rental price of apartments. This will enable more people to choose to move to the city.
iii. An increase in property taxes on houses in the suburbs will increase the cost of living outside the city leading individuals to look for housing within the city.
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Answer the next question based on the following payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm. Firm A? High PriceLow PriceFirm BHigh priceA = $250A = $325??B = $250B = $200?Low priceA = $200A = $175??B = $325B = $175If firm A adopts the high-price strategy, then firm B would adopt the
A. low-price strategy and earn $175. B. low-price strategy and earn $325. C. high-price strategy and earn $250. D. high-price strategy and earn $200.
Bill, a U.S. citizen, pays a Spanish architect to design a metal casting factory. Which country's exports increase?
a. Spain's b. the U.S.'s c. Spain's and the U.S.'s d. neither Spain's nor the U.S.'s
The most important among the Federal Reserve district banks in conducting monetary policy is the
A. San Francisco bank. B. Boston bank. C. Chicago bank. D. New York bank.
Monetary policy administered by the Fed is the principal method of softening the effects of the business cycle because _____.
(A) The outside lag for fiscal policy is shorter than the outside lag for monetary policy. (B) There are more political complications with determining and implementing fiscal policy. (C) Fiscal policy is not effective at easing the fluctuations of the economy. (D) Monetary policy has the shortest total delay in implementing and achieving a planned outcome.