Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because
a. those who stand to gain have an incentive to tell the truth.
b. those who stand to lose have an incentive to exaggerate their true costs.
c. answers to the survey questions will always be downwardly biased.
d. not everyone asked will be using the highway.
b
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Tariffs and import quotas both result in
A) lower levels of domestic production. B) the domestic government gaining revenue. C) lower levels of imports. D) higher levels of domestic consumption.
Curly told Larry about his new business venture: Curly pays Acme International $1,000 per month for supplies, works out of his apartment on his own computer and earns a monthly revenue of $1,500. Should Larry quit his job and do what Curly is doing?
A. Yes, as long as Larry has at least $1,000 in savings to get started. B. Not if Larry is earning more than $500 per month at his current job. C. Yes, as long as Larry can work out if his apartment and owns a computer. D. Not unless Larry can borrow the $1,000 monthly payment at no interest.