Which of the Following Statements Concerning Efficiency Is Correct

question 143

Multiple Choice

Which of the following statements concerning efficiency is correct?

• A)If a toll road is heavily used so that traffic movement is slowed, the price per vehicle should be reduced since the road is generating more revenue.
• B)Economists advocate high prices for abundant resources and low prices for scarce resources.
• C)If a toll road is heavily used and traffic movement is difficult, the price per vehicle should be increased to shift some traffic to less-crowded roads.
• D)None of the above is desirable in promoting efficient use of scarce road space.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a high standard deviation indicates greater variability.

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, used in z-score calculations to determine probabilities.

Normal Distribution

A statistical distribution which is evenly spread around the mean, indicating that occurrences close to the mean are more common than those further away.

Frequency Distributions

Showcases how often each different value in a set of data occurs.