Variable tolls on roads
a. are politically unpopular because people do not like the idea of paying for a good that they used to consume without paying for it directly.
b. rise when traffic volume increases to ensure the speed on the road is kept high.
c. are an effective way of correcting the common resource problem on roads.
d. All of the above are correct.
d
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For the buyer of a call option, the downside risk
A) is unlimited, but upside potential is limited. B) is limited, but upside potential is unlimited. C) and upside potential are unlimited. D) and upside potential are limited.
Assuming a real interest rate of four percent, which of these causes the largest increase in the present value of lifetime resources?
A) a winning lottery ticket that pays $9,600 today B) an additional $10,000 of income in the future period C) a salary increase of $5,000 both today and in the future period D) an additional $10,000 of current wealth
If both borrowers and lenders anticipate the rate of inflation correctly, then
A. borrowers will lose real income. B. lenders will lose real income. C. both borrowers and lenders will lose real income. D. neither borrowers nor lenders will lose real income.
Economists report changes in unemployment in:
A. percentages, not percentage points. B. percentage points, not percentages. C. nominal figures; they rarely use percentages or percentage point changes. D. percentage points or percentages, interchangeably.