The city of London imposes congestion fees on cars and trucks that drive in central London. The charge is higher Monday through Friday than on weekends. This example of
A. peak pricing.
B. positive externalities.
C. profit maximizing.
D. British socialism.
Answer: A
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Which of the following would lead to a rightward shift in the demand curve for golf balls?
a. An increase in the price of golf clubs b. A decrease in the popularity of golf c. An increase in the number of golfers d. A decrease in the price of golf balls e. An increase in the golf club membership fee
Increases in government expenditures and large budget deficits are projected for 2014-2020 . If strong growth is observed during this decade, this would be most consistent with
a. the Keynesian view. b. the supply-side view. c. the crowding-out effect. d. the new classical theory.
The country of Mu has continuous strong economic growth and a persistently steady price level. This situation is most likely the result of aggregate demand growing ________ aggregate supply.
What will be an ideal response?
Suppose that you borrow $100,000 from the bank to purchase some land and you agree to pay 2 percent interest on the loan. If the loan must be repaid in 12 months and the inflation rate is 3 percent during the year, then
A. you will repay the bank with fewer dollars than the bank initially loaned you. B. you will repay the bank with dollars with less purchasing power than it initially loaned you. C. the bank will receive fewer dollars, because of inflation, than it had initially expected to receive. D. you will repay the bank with dollars with more purchasing power than you initially borrowed.