To increase gas mileage, automobile manufacturers make cars small and light. Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage
These facts suggest that a positive relationship exists between safety and gas mileage.
Indicate whether the statement is true or false
FALSE
Economics
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Traffic congestion is an example of a negative externality because
A) motorists take into account all benefits while driving. B) motorists take into account all costs while driving. C) a motorist's cost of driving spills over and affects other motorists. D) a motorist's benefit from driving spills over and affects other motorists.
Economics
If the MPS = .25, and investment falls from $100 to $75, real GDP will decrease by:
a. $25. b. $75. c. $150. d. $125. e. $100.
Economics