When Monique drives to work every morning, she drives on a congested highway. What Monique does not realize is that when she enters the highway each morning she increases the travel time of all other drivers on the highway. In this case, the external cost of Monique's highway trip
a. increases the social cost above the private cost.
b. lowers the social cost below the private cost.
c. increases the social value above the private benefit.
d. decreases the social value below the private benefit.
a
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Supplier power tends to be lower when
a. Suppliers are concentrated b. There are high costs to switching between suppliers c. Both A&B d. None of the above
The supply of oil for users in the United States
a. was never an issue of serious public concern until the 1970s. b. has never been an issue of serious concern by political leaders. c. has often been a topic for dire warnings and forecasts of oil depletion. d. has been more and more in doubt since the early 1980s.
Exemptions and deductions included in the tax laws
A. Make the tax structure more progressive. B. Reduce horizontal inequities. C. Are designed to encourage specific economic activities. D. Reduce vertical inequities.
When an economy is in a recession, discretionary fiscal policy would call for ________, and the automatic stabilizers would ________.
A. lowering tax rates; lower tax revenues B. increasing tax revenues; increase tax rates C. increasing tax rates, lower tax revenues. D. increasing tax rates; increase tax revenues