A toll of $1 per car is imposed on a road regardless of time of day. If the toll creates equilibrium travel flows at the busiest time of day, it will create a __________ at all other times
A) surplus of space
B) shortage of space
C) zero money price for space
D) zero opportunity cost for space
A
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Which one of the following is TRUE?
A) New growth theory suggests that there is no connection between the level of education in a country and its rate of economic growth. B) New growth theory suggests that education benefits only those people who receive it, and not the population as a whole. C) Investments in secondary education produce gains in the form of economic growth. D) Secondary education does not boost economic growth in developing nations, because so much of the workforce remains in agriculture.
The local banking industry currently has a Herfindahl-Hirschman index (HHI) value of 1575 and two of the competing banks have considered merging. Because the merger would raise the HHI by 215 points, the Federal Trade Commission would likely
A) challenge the merger. B) not challenge the merger. C) allow the merger under the condition that HHI does not rise by more than 215 points as promised. D) allow the merger under the condition that the HHI remain at the premerger level of 1575.