If parking spaces on a college campus are scarce, with quantity demanded during the “peak” hours, from 8 a.m. to 11 a.m., far greater than the number of spaces, an economist would propose as an efficient solution,
A. lowering the parking fees during those hours to compensate students for the longer search time.
B. charging the same parking fees during all hours of the school day.
C. raising parking fees during the peak hours to encourage some students to schedule classes during other hours when parking fees are lower.
D. hiring more security guards to patrol for illegal parkers.
Answer: C
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The more certain private property rights are
A) the less people need to invest in education or human capital development. B) the more an economy must grow to maintain a certain living standard. C) the less entrepreneurship there will be. D) the more capital accumulation there will be.
In 2008, the Fed _____ the discount rate in order to _____ the economy.
A. increased; stimulate B. decreased; stimulate C. increased; restrain D. decreased; restrain
Other things the same, if the central bank decreases the rate at which it increases the money supply, then in the long run
a. the short-run Phillips curve shifts right. b. the short-run Phillips curve shifts left. c. the long-run Phillips curve shifts right. d. the long-run Phillips curve shifts left.
The crowding-out effect is small when firms are ______.
a. pessimistic about the future b. optimistic about the future c. considering sizable future investment d. operating at full-capacity