Which of the following is correct regarding road tolls as a way to reduce traffic?
a. They can vary based on the amount of traffic that is present.
b. They reduce drivers' explicit cost of driving but increase drivers' implicit cost.
c. Some drivers can be made better off, but some drivers will inevitably made worse off.
d. They are the solution to the free rider problem that occurs on roads.
a
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Which of the following would be classified as a public good?
A) state lotteries B) telephone service C) cable TV programming D) national defense
Labor productivity is calculated by dividing GDP by
A. population. B. the price level. C. capital stock D. labor force.
If a consumer has an income of $120, the price of X is $5, and the price of Y is $8. Which combination of the two goods is unattainable?
A. 2X and 13Y. B. 8X and 10Y. C. 12X and 8Y. D. 20X and 2Y.
What is the Coase theorem? What conditions need to be present for this theorem to work?
What will be an ideal response?