Recall the Application about the decrease in taxes on cigarettes in several Canadian provinces in 1994 to answer the following question(s). Recall the Application. The change in demand for cigarettes resulting from the decrease in taxes would normally create, ceteris paribus:
A. an increase in their supply.
B. a decrease in their supply.
C. an increase in their quantity supplied.
D. a decrease in their quantity supplied.
Answer: C
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If the marginal benefit of reducing emissions of some air pollutant is less than the marginal cost
A) economic efficiency will be increased if further reductions are made. B) pollution taxes should be imposed on producers to pay for further reductions. C) further reductions will make society better off. D) further reduction will make society worse off.
Of the following demographic groups, which has the lowest poverty rate in the U.S.?
a. Families headed by a female with no adult male present. b. Families in which the "head of the household" has not attained a high-school education. c. Families headed by a male with no adult female present. d. Families in which the "head of the household" has attained at least a bachelor's degree from a college or university.
Which of the following policies would be most likely to reduce the rate of inflation?
a. sale of government bonds by the Federal Reserve b. a reduction in the discount rate c. an increase in the size of the federal budget deficit d. a reduction in the required reserves imposed on the banking system
The open economy effect suggests that
A. a rise in domestic price level will cause domestic residents to buy fewer imported goods. B. a rise in domestic price level will cause foreign residents to buy more domestic goods. C. a decrease in domestic price level will cause foreign residents to buy fewer domestic goods, increasing net exports. D. a decrease in domestic price level will cause foreign residents to buy more domestic goods, increasing net exports.