The private actuar marginat benefit of turning

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22. The private actuar marginat benefit of turning highway 70 into a torr road isactual marginal iscost (1) Sros,ooo; SrrffiI(2) Sao,ooo; Stao,ooo(3) Sros,oOo; SraO,@O(4) Sros,ooo; Sgo,ooo(5) None ofthe above
23. The sociar actuat marginar benefit of turning highway 70 a torr road isactual marginal cost into is
(5) Noneoftheabove24' The rational decision lnr]va-tery; is ; the good decision (privately)
to build
buitd
25. society wants us ' ' because social economic surplus would be equal tohighway into a toll road.(1) To turn the highway into a toll road; 570,000(2) Not to turn the highway into a toll road; -5t0,000(3) Not to turn the highway into a tollroad;-$45,000(4) To turn the highway into a toll road; 545,[email protected](5) None ofthe above26. lf we turn highway 70 into a toll road we expect to earn in economic surplus and we willactually earnin economic surplus (privately).(1) s80,000; stt0,000(2) 560,@0; -S1o,[email protected](3) S60,000; S35,ooo(4) -srs,ooo; s25,000(5) None ofthe above27. This decision to turn highway 70 into a toll road includes a(1) Negative externality(2) Progressive tax(3) Positive externality(4) Pigovian Subsidy(5) lmpossible to determine with the information providedif we turn the
2. Basics of the Free Market Modelsuppose the following graph represents the market for electric vehicles. use this graph to answer thefollowing questions about the way the free market system works to allocate scarce resources.Price (U.S. dollars)100,000 "T-__-I90,00080,00070,00060,00050,00040,00030,00020,00010,0000u Iu 20 30 40 50 60 70 80 90 100 110 120Quantity (millions of cars)a. Consider the electric car market illustrated by the graph above. Suppose the price of electric cars isSSO,OO0 per car. What will be the impact on this market? Will it be in equilibrium? Will there be anexcess demand or excess supply?fur-bce )cerS t n dar"tn e)('Ll;iililiIJJ- | U,.-r\Only.-.ri lfIt ^ZO r"ienl>t0ftn(<^t,ollhu n1,r-i / i bri uvtl;ll lot sal)^+@rNo28. At a price of 56O000 per cat the quantity demanded will bebe -.(1) 80 million;20 million(21 40 million;40 million(3) 40 million;90 million(4) 20 million;80 million(5) lmpossible to determine with the information provided10
29. At a price of 560,000 per car, the market will _ and there will be(1) Not be in equilibrium; an excess demand(2) Not be in equilibrium; an excess supply(3) Be in equilibrium; no surplus or shortage(a) Be in equilibrium; a surplus shortage(5) lmpossible to deter.mine with the information providedb. What will be the market equilibrium outcome? ln other words, what will O. ,n" equilibrium price, theequilibrium quantity bought and the equilibrium quantity sold?$ ictooo{1 0l"A1llrcnC-o,rx30.Atequilibrium,thepricewillbepercarandtherewil]becars sold.(1) 540,000;90 million; 40 million(2) SAO million; 30,000; 30,000(3) SEO,OOO;40 million;40 million(4) 560,000;20 million;80 milllon(5) lmpossible to determine with the information provided31. lf this outcome is economically efficient, then we can also say that(1) We are producing the maximum possible economic surplus for society(2) All externalities are positive externalities(3) lnformation is asymmetric(4) The economic pie is being divided as equitably as possible(5) All of the abovec.

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