By driving onto a congested road for which no toll is charged, a driver
a. contributes to the overuse of a common resource.
b. contributes to a negative-externality problem.
c. is inflicting additional time cost on all of the other drivers.
d. All of the above are correct.
d
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A disadvantage of chain-weighting is that
A) past inflation rates change whenever the base year changes. B) past growth rates of real GDP change whenever the base year changes. C) it causes output growth to slow. D) the components of real GDP don't sum to real GDP.
Which of the following is a probable consequence of the presence of accounting rules that allow firms to hide the financial impact of actions that would harm investors?
a. Investors may be able to enforce market efficiency. b. The WTO will disenfranchise the country that allows this to happen. c. Investors will immediately organize a speculative attack and the price of stocks will inflate. d. The balance-of-payments deficit will increase, leading the economy into a debt trap. e. Investors may not be able to adequately judge when the risk of investing in a firm rises.
From uncovered interest parity, we know that when the domestic interest rate is greater than the foreign one:
a. the domestic currency is expected to appreciate. b. the domestic currency is expected to depreciate. c. the foreign currency is expected to appreciate. d. the foreign currency is expected to depreciate.
Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below.
Suppose the town can purchase land for the park at a cost of $20 per acre. The optimal park size would be ________ acres.
A. 4 B. 8 C. 6 D. 2