Technology is now being developed so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your car and automatically charges you for the use of the road. How would this affect bottlenecks and rush-hour congestion?

A. It would decrease bottlenecks and rush-hour congestion.
B. It would decrease bottlenecks but increase rush-hour congestion.
C. It would increase bottlenecks and rush-hour congestion.
D. It would increase bottlenecks but decrease rush-hour congestion.


Ans: A. It would decrease bottlenecks and rush-hour congestion.

Economics

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Under the current managed float exchange rate regime; countries with surpluses in their balance of payments frequently do not want to see their currencies appreciate because it makes their goods ________ expensive abroad and foreign goods ________ in

their countries. A) more; cheaper B) more; costlier C) less; cheaper D) less; costlier

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If the population increase in India is smaller than the increase in Indian real GDP, then GDP per capita will

a. decrease. b. increase. c. remain constant. d. increase more slowly than real GDP.

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Politicians and economists who are generally conservative tend to believe that

a. the self-correcting mechanism is slow and unpredictable. b. the short-run Phillips curve is relatively steep. c. the costs of unemployment are high. d. expectations in reaction to policy measures are very slow to change.

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Assume that a seller in a perfectly competitive market charges more than competitors are charging. It is likely that this seller will:

A) increase his profit. B) increase his sales. C) lose only a few buyers. D) lose almost all of his buyers.

Economics