Which of the following might be a way that an automobile driver's pollution costs could be internalized?
A. The state could pay a gas subsidy for everyone who drives.
B. The driver could purchase abatement equipment for her car.
C. The state could eliminate gas taxes.
D. The state could allow her to drive in the High-Occupancy Vehicle (HOV) lane.
Answer: B
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When a monopolist integrates vertically with another monopolist the result:
a. is always beneficial to consumers. b. is never beneficial to consumers. c. may or may not be beneficial to consumers. d. does not have any effect on consumers.
The impact of monetary policy through exchange rates tends to ________ the impact of monetary policy through real interest rates.
A. contradict B. reinforce C. be exactly the same as D. totally negate
Cartels are unstable and will tend to fall apart due to cheating on the agreement.
Answer the following statement true (T) or false (F)
Linus has just watched two hours of TV. We can say:
A. his second hour of watching TV likely reduced his total utility. B. his second hour of watching TV likely added less to his total utility than did the first. C. if he watches a third hour it will likely increase his total utility by at least as much as the second. D. if he watches a third hour it will likely decrease his total utility.