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A Congestion Toll Imposed on a Highway Driver to Force

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A congestion toll imposed on a highway driver to force the driver to take into account the increase in travel time she imposes on all other drivers is an example of internalizing the externality.


Definitions:

Labor Demand

The complete number of employees that businesses aim to recruit at a specific salary level, during a specified time frame.

Low-wage Country

A Low-wage Country is one where the average remuneration for labor is significantly lower than that in developed countries, often leading to cost-focused offshoring by firms.

Barriers

Barriers refer to obstacles that limit or prevent entry or access to a specific market, process, or resource by new competitors or participants.

International Flow of Labor

The movement of workers across borders from one country to another, mainly driven by demand for labor, economic disparities, and globalization.

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