The text uses traffic congestion as an example of
A) a surplus of automobiles.
B) a negative externality.
C) a good priced above equilibrium.
D) an engineering rather than an economic problem.
B
Economics
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The marginal rate of substitution is equal to the ________
A) marginal cost of each good B) magnitude of the slope of the indifference curve C) inverse of the slope of the budget line D) relative price of the two goods
Economics
If the short-term nominal interest rate is 3.4%, the term structure effect is 1.2%, the default-risk premium is 1.4%, and the expected rate of inflation is 2.7%, the long-term real interest rate will be
A) -1.9%. B) 0.5%. C) 3.3%. D) 8.7%.
Economics