A carbon tax placed on coal:
A. would decrease the price of coal.
B. would cause some producers of goods and services, like cars, to switch to other forms of energy.
C. is unlikely to affect the demand for alternative forms of energy.
D. would increase the quantity of coal demanded at every price.
Answer: B
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Holding all else constant, an increase in the preferences of Americans for Mexican goods will ________ the supply of dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. decrease; decrease B. decrease; increase C. increase; increase D. increase; decrease
International trade can be correctly considered as an example of a zero-sum game
a. True b. False Indicate whether the statement is true or false
A newspaper reports that in an urban area the average price of new homes had decreased, but the number of new homes sold had increased. This situation would best be explained by a(n):
a. Increase in supply b. Decrease in demand c. Increase in demand d. Decrease in supply
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis Table 1.3, what is gained from producing at point L rather than point K?
A. 17 combs. B. 10 combs. C. 7 brushes. D. 1 brush.