What are the external costs and external benefits associated with cell phone usage in automobiles?
The external costs associated with cellular phone usage may include a higher incidence of traffic accidents. Not only are the individuals involved in the accident bearing additional costs, but so also are other insured drivers who now have to pay higher insurance rates. External benefits could include the ability to report an accident so that help can reach victims more quickly, and so that traffic reporters can advise motorists to avoid a particular area.
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Rhonda's utility of wealth is 65 units at $5,000, 80 units at $7,000, and 95 units at $10,000. Starting from zero wealth, she must choose between options A and B
Option A gives her $7,000 for sure. Option B gives her $5,000 with probability 0.6 or $10,000 with probability 0.4. Rhonda A) will choose A. B) will choose B. C) is indifferent between A and B. D) needs more information to make a choice.
Total income is always equal to ________ expenditures; but only in equilibrium is it equal to ________ expenditures, producing in equilibrium ________ on income to change
A) actual, planned, pressure B) actual, planned, no pressure C) planned, actual, pressure D) planned, actual, no pressure
Graphically, the market demand curve is:
A. steeper than any individual demand curve that is part of it. B. greater than the sum of the individual demand curves. C. the horizontal sum of individual demand curves. D. the vertical sum of individual demand curves.
With a downsloping demand curve and an upsloping supply curve for a product, placing an excise tax on this product will:
A. increase equilibrium price and quantity. B. decrease equilibrium price and quantity. C. decrease equilibrium price and increase equilibrium quantity. D. increase equilibrium price and decrease equilibrium quantity.