A $25 government subsidy paid directly to buyers of jeans will result in
a. a downward shift in the demand curve for jeans by $25.
b. an upward shift in the demand curve for jeans by $25.
c. a downward shift in the supply curve for jeans by $25.
d. an upward shift in the supply curve for jeans by $25.
B
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"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have
A) a negative slope. B) a positive relationship. C) a direct relationship. D) a horizontal line.
An unintended byproduct of a market exchange that is allocated outside the market system is _____
a. a restrictive covenant b. an externality c. a pollution right d. an external damage
While the CPI focuses on changes to prices for consumers, the PPI:
A. looks specifically at the price changes that affect the typical producer. B. stands for the producer price index. C. measures the prices of goods and services purchased by firms. D. All of these statements are true.
A government-inhibited good is one that
A. the political process has determined is socially undesirable. B. freely competitive markets have determined is socially desirable. C. the political process has determined is socially desirable. D. we want to encourage the consumption of.