Traffic congestion is an example of a negative externality because
A) motorists take into account all benefits while driving.
B) motorists take into account all costs while driving.
C) a motorist's cost of driving spills over and affects other motorists.
D) a motorist's benefit from driving spills over and affects other motorists.
C
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The current U.S. average tariff rate is
A) less than 5 percent. B) greater than 10 percent. C) approximately 20 percent. D) over 50 percent.
What is the relationship between the natural unemployment rate, the unemployment rate, potential GDP, and actual GDP?
What will be an ideal response?
When the government increases its demand for loanable funds, it causes the demand:
A. for loanable funds curve to shift to the right, which increases interest rates. B. for loanable funds curve to shift to the left, which increases interest rates. C. of loanable funds curve to shift to the right, which decreases interest rates. D. of loanable funds curve to shift to the left, which decreases interest rates.
The downward-sloping part of the long-run average total cost curve is a result of: a. economies of scale
b. diseconomies of scale. c. constant returns to scale. d. diminishing marginal returns.