If the social costs of driving an automobile are greater than the private costs of driving an automobile, then
A) the external costs of auto driving exceed the social costs of auto driving.
B) the external costs of auto driving exceed the internal costs.
C) the price of automobile driving is too high.
D) either people drive their autos too much or more funds should be spent on reducing air pollution.
Answer: D
You might also like to view...
All the production points that lie ________ the total product curve are attainable and ________
A) above; efficient B) above; inefficient C) below; efficient D) below; inefficient
Comparative advantage is
A) the ability to perform an activity at a lower opportunity cost than anyone else. B) the ability to perform an activity at a higher opportunity cost than anyone else. C) the ability to perform an activity at a zero opportunity cost. D) another name for absolute advantage.
Which of the following policies would a Keynesian expect to produce the largest increase in income?
a. a reduction in government spending of $100 billion b. an increase in transfer payments of $100 billion c. an increase in government spending of $100 billion d. a tax cut of $100 billion
In the business cycle, what is the difference between the recovery phase and the expansion phase?
A) The expansion phase occurs in the rising portion of the business cycle, while the recovery phase occurs in the falling portion of the business cycle. B) The expansion phase occurs in the falling portion of the business cycle, while the recovery phase occurs in the rising portion of the business cycle. C) The expansion phase is the period when Real GDP increases beyond the recovery phase. D) The expansion phase must always come before the recovery phase.