The book cites a result where after of the implementation of the congestion tax in Stockholm, Sweden of $1.50-$3.00, traffic volume was reduced and travel time for cars and buses was cut in half. This is an example of:
A. responding to incentives.
B. the role of pricing in allocating resources.
C. caveat emptor.
D. comparative advantage.
Answer: A
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If the government's expenditures are $1.5 trillion and its tax revenues are $2.2 trillion, the government is running a budget...
What will be an ideal response?
Inflation can occur under conditions of full employment
A) only if the central bank continues to inject money into the economy and the agents' expectations of inflation are supported by the bank's activities. B) only if the central bank continues to inject money into the economy. C) only if the central bank continues to withdraw money from the economy. D) only if the central bank continues to inject money into the economy and all agents expect that inflation will not occur. E) only if the central bank fails to inject money into the economy.
Which is not considered an “anticompetitive practice”?
A. Firms threaten to destroy competitors through innovation. B. A firm forces competitors to compete on prices. C. A firm prevents the entry of new rivals. D. Firms share intellectual property that may be helpful for research and development.
The difference between specific knowledge and general knowledge is that
a. the creation of general knowledge is usually more profitable for the creator. b. specific knowledge is excludable, while general knowledge is not excludable. c. general knowledge is excludable, while specific knowledge is not excludable. d. general knowledge is rival in consumption, while specific knowledge is not rival in consumption.