When Congestion Occurs on the Freeway (Because of a Shortage

question 6

Multiple Choice

When congestion occurs on the freeway (because of a shortage of freeway space) ,an economist would most likely explain this by saying that it is because

• A) the freeway has too few miles of roadway.
• B) there are too many cars.
• C) the price of driving on the freeway is below the equilibrium price.
• D) a and c

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Definitions:

Organizations

Structured groups of people coming together to achieve common goals, often through a defined hierarchy and rules.

Hedonistic Principle

A philosophical concept suggesting that actions are motivated by the pursuit of pleasure and the avoidance of pain.

Political Might Principle

The concept that political power and influence can significantly impact decision-making processes and outcomes within organizations and societies.

Self-Serving Ethical Principles

Moral rules or guidelines that individuals adopt, primarily to benefit themselves, often at the expense of others.