5. The Corporate Average Fuel Efficiency standards a Increases revenue from gasoline taxes b Has increased the demand for cars and reduced the demand for light trucks c Increases the profit margins on luxury sport utility vehicles (SUVs) d None of the above 6. The so-called "Embedding Effect" predicts that a individuals will value two penguins by less than double the value of one penguin b the initial allocation of resources should not affect relative prices c individuals must be paid more to give up an object than they will pay to acquire it d government size matters 7. The Hicks-Kaldor Compensation says that a project is socially beneficial a the winners can and do compensate the losers making everyone better off. b all markets are perfectly competitive and price equals marginal cost c payments are made using lump-sum transfers d none of the above 8. Which of the following is NOT required for the Tiebout hypothesis to hold? a income is distributed equitably across households b the number of community choices is very large c households are mobile across communities d local taxes are only paid in a lump-sum fashion