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 younger than 25 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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A shortage will tend to occur at which price in Figure 4-21?
A. P1 B. P2 C. P3 D. There will be no shortage at the prices shown.
A dominant strategy is one that is prevailing. ?
Answer the following statement true (T) or false (F)
Which of the following statements is true?
A) The U. S. economy would gain from the elimination of its tariffs but not from the elimination of its quotas. B) The U.S. economy would gain from the elimination of tariffs and quotas even if other countries do not reduce their tariffs and quotas. C) Economic efficiency would be increased if the United States eliminated all of its trade restrictions, but only if all other countries eliminated their trade restrictions too. D) Eliminating its tariffs and quotas unilaterally would not benefit the United States because this would remove the leverage it would have to persuade other countries to eliminate their trade restrictions.
The political party that is in power determines the position and shape of the production possibilities frontier that constrains the choices of the economy
a. True b. False Indicate whether the statement is true or false