Suppose there are two parallel highways between two cities with approximately equal traffic. What would you expect to happen if the state began charging tolls to drive on one of those highways?
A. More drivers would drive on the toll road making the non-toll road less congested.
B. Traffic would remain evenly divided between the two roads as drivers continuously sought the less-congested route.
C. More drivers would drive on the non-toll road, making the toll road less congested.
D. Traffic would decrease on both roads.
Answer: C
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Because central banks have not been willing to give up their option of intervening in the foreign exchange market, the current international financial system can best be described as a
A) variable-pegged exchange rate system. B) moving-pegged exchange rate system. C) hybrid of a fixed exchange rate and flexible exchange rate system. D) flexible-exchange, dollar-pegged exchange rate system.
If a resource is purchased and sold in a perfectly competitive market:
a. there are a large number of resource suppliers and the resources are identical. b. there is a single buyer of resource and the resources are identical. c. there is a single buyer of resource and the resources are differentiated. d. there are a large number of resource suppliers and the resources are differentiated. e. there are a large number of resource suppliers and there is no entry or exit.