If a tax on gasoline is appropriately set, the congestion externality on roads can be fully internalized -- resulting in the efficient level of congestion on roads.
Answer the following statement true (T) or false (F)
False
Rationale: Given that road congestion only arises during certain "peak" hours, taxing gasoline to internalize the externality at peak times would "over-tax" gasoline during non-peak hours.
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The world trading system combines negotiated agreements that promote trade liberalization called ________ with binding agreements called ________ that block tariff increases
A) fiscal policies; monetary policies B) truces; aggressions C) free trade; enforcement contracts D) levers; ratchets E) wheels; walls
Real GDP is important because it is highly correlated with other measures of economic activity.
Select whether the statement is true or false. A. True B. False
Economists at the Congressional Budget Office estimated that for 2015, the U.S. natural rate of unemployment was about 4.9 percent
a. True b. False Indicate whether the statement is true or false
Gains of trade are possible for two countries if they have:
A) different opportunity costs. B) equal opportunity costs. C) different political systems. D) identical political systems.