Refer to the information provided in Figure 16.4 below to answer the question(s) that follow.Los Angeles International Airport (LAX) is located next to Playa Del Rey. The noise from air traffic negatively affects individuals living in Playa Del Rey, however, this cost is not considered by airlines or air travelers. The airlines feel they have a right to use the airspace while the individuals living in Playa Del Rey feel they have the right to quiet. The following diagram depicts the marginal costs and marginal benefits associated with air travel.
Figure 16.4Refer to Figure 16.4. Suppose the government assigns property rights to the airlines, then the
airlines and the residents engage in negotiations. The ________ of air travel is 100 units.
A. resulting efficient level
B. minimum allowable level
C. government-regulated level
D. maximum allowable level
Answer: A
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What does U.S. GDP intend to measure?
A) The market value of final goods and services produced by U.S. citizens during the course of a year B) The market value of all goods and services produced by U.S. citizens during the course of a year C) The market value of final goods and services produced within the U.S. during the course of a year D) The market value of all goods and services produced within the U.S. during the course of a year
If the Fed's goal is to hold income constant, an expansionary fiscal policy must be accompanied by ________ monetary policy, and the Fed must allow the interest rate to ________ significantly
A) an expansionary, rise B) an expansionary, fall C) a contractionary, rise D) a contractionary, fall
Temporary or permanent workers hired to replace striking union workers are known as
A) strikebreakers. B) backbreakers. C) rationers. D) strikeaiders.
If the economy is in a recession, which point in the graph shown would likely represent this?
A. E1
B. E2
C. E3
D. E4