If a road is congested, then use of that road by an additional person would lead to
a. a negative externality.
b. a positive externality.
c. a natural monopoly.
d. a free-rider problem with rush hour drivers stuck in traffic.
e. none of the above.
a. a negative externality.
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Next year's expected price of oil is $88 per barrel and the interest rate is 10 percent per year. According to the Hotelling Principle the price of oil this year is
A) $80 per barrel. B) $88 per barrel. C) $96 per barrel. D) None of the above answer is correct.
If there is a negative sign in front of unilateral transfers for the United States, then
A) the United States imported more services than it exported. B) the value of U.S. gifts to foreigners exceeded foreign gifts to U.S. residents. C) the United States imported more commercial financial assets than it exported. D) the United States had a negative balance of trade.
Which of the following is an amendment to the Clayton Act that strengthened it against price discrimination?
a. The Sherman Antitrust Act. b. The Federal Trade Commission Act. c. The Robinson-Patman Act. d. The Celler-Kefauver Act.
A major theme in economics is:
a. People can increase resources by limiting their economic wants b. People have limited economic wants and limited resources c. People have unlimited economic wants, but limited resources d. Unlimited resources and unlimited economic wants