According to the Text,economists Identify That the Reason Why Traffic

question 47

Multiple Choice

According to the text,economists identify that the reason why traffic congestions exists and wastes large amounts of resources in the economy is because

• A) the drivers are NOT mindful of the additional time they impose on other drivers if they enter a highway.
• B) the cars are too big.
• C) the drivers are mindful of the additional time they impose on other drivers if they enter a highway.
• D) the roads are too small.

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Definitions:

Monetary System

A structured system for creating, managing, and distributing money in an economy.

Barter Economy

An economic system in which goods and services are exchanged directly for other goods and services without the use of money.

Efficient Price

A market condition where prices reflect all available information and resources are allocated to their most valuable use.

Efficient Quantity

The level of output where the marginal benefit to consumers equals the marginal cost of producing an additional unit, leading to optimal resource allocation.