This graph depicts a tax being imposed, causing demand to shift from D1 to D2. According to the graph shown, the tax caused:
A. positive government revenue and decreased consumption.
B. zero government revenue and decreased consumption.
C. a transfer of revenue to surplus and increased consumption.
D. positive government revenue and increased consumption.
A. positive government revenue and decreased consumption.
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As more people started using fax machines, fax machines became more valuable to individual users. This is an example of a(n) ________
A) moral hazard B) adverse selection C) network externality D) negative externality
The lower the tax rate, the ________ the after-tax profits and the ________ the after-tax net present value of an investment.
A) higher; higher B) lower; lower C) higher; lower D) lower; higher
A telecommunication company divided into different divisions for residential and business Internet service is an example of
a. An M-form of an organization b. A functional organization c. An N-form organization d. All of the above
If the multiplier is 3, equilibrium real GDP is $1,000 billion, and investment is $400 billion, what will happen if investment decreases to $380 billion? Real GDP will:
a. increase to $1,020 billion. b. increase to $1,060 billion. c. decrease to $980 billion. d. decrease to $940 billion. e. decrease to $970 billion.