Recall the Application about the external cost of young drivers to answer the following question(s).Recall the Application. If the external costs of drivers on average could be internalized by a vehicle mileage traveled tax of 4.4 cents per mile, then you would expect that to fully internalize the external costs of accidents by drivers older than 70 to be:
A. 4.4 cents per mile.
B. lower than 4.4 cents per mile.
C. higher than 4.4 cents per mile.
D. zero as there are no externalities in driving.
Answer: C
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In 1978, China was the world's 15th-largest economy. By 2011, China had:
A. the second-largest economy in the world. B. a larger economy than Japan but smaller than Germany. C. an economy worth about $11 trillion. D. the fourth-largest economy in the northern hemisphere
Which is greater, gross domestic product or national income? By how much?
a. Gross domestic product < National income; indirect business taxes, depreciation, and income earned by foreigners in the United States b. Gross domestic product < National income; net exports and indirect business taxes c. Gross domestic product > National income; net exports and indirect business taxes d. Gross domestic product > National income; indirect business taxes, depreciation, and income earned by foreigners in the United States
If the U.S. dollar depreciates against the yen below the targeted exchange rate, the U.S. Federal Reserve has to intervene in the foreign exchange market such that:
a. the U.S. demand for yen rises. b. the supply of U.S. dollars rises. c. U.S. exports to Japan fall. d. the U.S. dollar is devalued. e. the supply of U.S. dollars falls.
If a bank has $1,000,000 in reserves and checking deposits of $3,000,000 . what is the bank's reserve position if the required reserve ratio is 20 percent?
a. The bank has $500,000 of required reserves and $500,000 of excess reserves. b. The bank has $600,000 of required reserves and $400,000 of excess reserves. c. The bank has $400,000 of required reserves and $600,000 of excess reserves. d. The bank has $200,000 of required reserves and $800,000 of excess reserves.