It has been demonstrated that a competitive market economy allocates resources efficiently. Specifically, in a competitive equilibrium, all opportunities for additional gain have been exhausted so that no individual can be made better off without making another individual worse off. Economists often argue that economic efficiency can be improved if prices that are set by non-market forces are set so that higher prices are charged for relatively overutilized resources. Which of the following is an example of how a price system can be manipulated to promote efficiency?
A) Price supports can be used to make sure domestic sugar producers stay in business.
B) The price for admission to a national park can be increased during peak times to limit overuse of the park.
C) Rent control can be used to ensure affordable housing in cases when the market price is too high.
D) United Airlines can charge one price for a flight to and from anywhere in the United States, regardless of the actual cost.

B) The price for admission to a national park can be increased during peak times to limit overuse of the park.

Explanation:

In line with the rules of Supply and Demand, if a resource is in high demand, there should be a higher price associated with it to reflect its relative scarcity in relation to demand. If a resource is being overutilized (in demand) therefore, it would make sense that it gets a higher price.

This is the case with the national park during peak times. At this time there are quite a lot of people in it and this means that it is being overused. In such times, the entrance fee should increase to reflect that the demand is quite high and to limit the overuse of the park.

steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation:

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