Drivers are charged a price to use a tollway. But even tollways, such as the Tri-State Tollway near Chicago, become heavily congested during the morning and evening rush hours. Thus,
A) the rush hour represents a surplus of cars.
B) your textbook author is wrong in claiming congestion is caused by zero prices.
C) higher tolls are required during rush hours to reduce congestion.
D) growing population is indeed the problem.
C
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All growth theory today is "new growth theory" because it considers a broad framework that includes technological progress
Indicate whether the statement is true or false
Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3
A) the quantity demanded is economically efficient but the quantity supplied is economically inefficient. B) too many consumers want to buy iced tea. C) the quantity supplied is greater than the economically efficient quantity. D) economic surplus is maximized.
In a perfectly competitive equilibrium with production and trade, which of the following results occur(s)?
A) Pareto-efficiency is obtained. B) The First Welfare Theorem is satisfied. C) There is efficiency in production. D) All of the above.
If one-time gains from defection are always less than the discounted present value of an infinite time stream of cooperative payoffs at some given discount rate, the decision-makers have escaped
a. the Folk Theorem b. the law of large numbers c. the Prisoner's dilemma d. the paradox of large numbers e. the strategy of recusal