When people buy land, their purchases are included in GDP

A compulsory payment to government that is generally linked to engaging in some activity is referred to as a

A) tax. B) subsidy. C) deadweight loss. D) quota.

The Massachusetts Turnpike is a state toll-road where cars and trucks pay a fee in proportion to the distance they travel and the weight of the vehicle. The road was built with federal funds in the 1960s, but the state must pay for maintenance. Given what you know about regulation, what do you think the toll charge for a particular car or truck represents?

a. the average variable cost of maintenance b. the marginal cost of maintenance c. the monopoly price d. price discrimination against bus passengers e. a lump-sum tax