Suppose the government imposed a carbon tax on firms that emit pollution. Then
A. the firms' marginal cost of production would increase, and the supply curves within the market would shift to the left.
B. the firms' marginal cost of production would decrease, and the supply curves within the market would shift to the left.
C. the firms' marginal cost of production would decrease, and the supply curves within the market would shift to the right.
D. the firms' marginal cost of production would increase, and the supply curves within the market would shift to the right.
Answer: A
You might also like to view...
Suppose demand decreases, but there is no change in supply. As the market reaches its new equilibrium:
A. excess supply will lead the price to fall. B. excess demand will lead the price to fall. C. excess supply will lead the price to rise. D. excess demand will lead the price to rise.
If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 10, and potential output (Y*) equals 9,000, then government purchases must ________ to eliminate any output gap.
A. decrease by 100 B. decrease by 1,000 C. increase by 1,000 D. increase by 100
Use the following table to answer the next question.Money SupplyInterest RateGross Investment$200 billion0.2%$1 trillion$250 billion0.2%$1 trillion$300 billion0.2%$1 trillionWhich limitation for monetary policy is illustrated by the table?
A. crowding out B. pessimistic business expectations C. policy lags D. the liquidity trap
The median-voter theorem can help explain one reason why politicians tend to change their position on a given issue over the course of an election from:
A. extreme to moderate. B. moderate to extreme. C. extreme to more extreme. D. one extreme to the other.