A congestion toll imposed on a highway driver to force the driver to take into account the increase in travel time she imposes on all other drivers is an example of internalizing the externality
a. True
b. False
Indicate whether the statement is true or false
True
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What is meant by the "law of one price"?
A) A law was passed in 1913 that made it illegal to sell the same good or service to different people for different prices. B) This is a section of the Sherman Act that forced trusts (for example, the Standard Oil Company) to charge the same price for the same good or service in different states. C) Foreign companies should not be allowed to sell a product in the United States for prices different from prices these companies charge in other countries. D) Identical products should sell for the same price everywhere.
Every economic choice has an opportunity cost
a. True b. False Indicate whether the statement is true or false
In the U.S. balance of payments, purchases of foreign assets by U.S. residents are tabulated as a:
a. unilateral transfer. b. capital outflow. c. current account outflow. d. capital inflow.
Referring to discussion in an Added Perspective, Stanley Jevons warned in 1865 that England would quickly run out of
a. lumber b. food c. coal d. oil e. clean water