A Camera Takes a Picture of Drivers Who Do Not

question 25

Multiple Choice

A camera takes a picture of drivers who do not stop at a red light,and this practice is used to issue a traffic ticket.These red light cameras can be understood as serving a(n) :

• A) positive incentive to encourage individuals to stop at a red light.
• B) negative incentive to discourage individuals from driving through a red light.
• C) indirect incentive to encourage individuals to stop at a red light.
• D) direct incentive to encourage individuals to stop at a red light.
• E) negative incentive to encourage individuals to drive through a red light.

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Definitions:

Velocity of Circulation

The rate at which money moves through the economy, from transactions of individuals and businesses.

Unemployment Rate

A measure of the percentage of the labor force that is jobless and actively looking for employment.

Expansionary Monetary Policy

A policy by central banks to increase the money supply and decrease interest rates to stimulate economic growth.

Keynesian Economist

An economist who believes in Keynesian economics, which advocates for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of depression.