The budget line represents a consumer's preferences for a commodity
a. True
b. False
Indicate whether the statement is true or false
False
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In the figure above, the U.S. government's revenue from the tariff is ________
A) $64 million B) $32 million C) $128 million D) $48 million
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and higher level of output. C. higher price level and higher level of output. D. lower price level and lower level of output.
If the income elasticity for a particular good is negative, then:
A. as income increases, consumers will tend to purchase more of the good. B. as income increases, consumers will tend to purchase less of the good. C. the good is a normal good. D. the good is a luxury good.
The double dividend of corrective taxes consists of ______.
a. eliminating regulations and boosting output b. increasing production and lowering prices c. taxing the harm and raising revenues d. closing down firms and prosecuting polluters