Does a tax on sellers affect the supply curve?
A. Yes, it shifts up by the amount of the tax.
B. Yes, it shifts to the right by the amount of the tax.
C. Yes, it shifts to the left by the amount of the tax.
D. No, there is change in the quantity supplied, but the supply curve does not move.
Answer: A
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An organization offers training programs for its employees at a subsidized rate to help them use a nascent technology that the organization is adopting. The trained employees later bargain for a higher wage from the management as their probability of finding better paying jobs increase because some other companies are also adopting it. This action of the employees is an example of:
a. selfishness. b. holding up. c. opportunism. d. specificity.
The Phillips Curve depicts that, in general:
A. high amounts of unemployment in an economy will coincide with low inflation. B. high amounts of output in an economy will coincide with low inflation. C. high amounts of unemployment in an economy will coincide with high inflation. D. low amounts of unemployment in an economy will coincide with low inflation.
If marginal revenue is less than marginal cost, the firm should
A. raise marginal revenue. B. decrease its rate of output. C. increase its rate of output. D. raise price.
Which of the following is an example of an external benefit?
A. More people start to install solar panels on their roofs, and as a result, electricity use goes down as does the pollution created by the generation of electricity. B. A company opens a slaughterhouse at the end of your street. C. The city spends $500,000 to upgrade the local jail. D. Firms are able to reduce their costs of production by using a more efficient technology.