Which of the following statements concerning efficiency is correct?
A. If a toll road is heavily used so that traffic movement is slowed, the price per vehicle should be reduced since the road is generating more revenue.
B. Economists advocate high prices for abundant resources and low prices for scarce resources.
C. If a toll road is heavily used and traffic movement is difficult, the price per vehicle should be increased to shift some traffic to less-crowded roads.
D. All of these options are desirable in promoting efficient use of scarce road space.
Answer: C
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The economy of Carl’s country is growing at a rate of 1.75 percent per year. The economy of Miska’s country is growing at a rate of 3 percent per year. Approximately how much longer than Miska’s country will it take for the economy of Carl’s country to double?
a. 1.25 years b. 16.7 years c. 56 years d. 40 years
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.
A situation in which society may not be able to rank its preferences consistently through paired-choice majority voting refers to:
A. logrolling. B. the paradox of voting. C. the median-voter model. D. the special-interest effect.
The downward slope of the Phillips curve suggests that
A. policy makers face a trade-off between inflation and unemployment. B. a decrease in the money supply will stimulate aggregate demand. C. an increase in the price level will depress nominal wages. D. an increase in the price level will increase the money supply.