Suppose that government decides to create a license for widget makers. Only licensed widget makers are allowed to produce widgets. Moreover, only half of the current widget producers are eligible to obtain the license. What will happen with the supply curve of widgets?
A) It will not change.
B) It will shift to the left.
C) It will shift to the right.
D) It will slope downwards.
B
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Holding other factors constant, an increase in the tax rate on revenue generated by capital will:
A. decrease national saving. B. increase national saving. C. increase investment. D. decrease investment.
The outcome of first-degree price discrimination is:
A) Pareto efficient with equity. B) Pareto efficient with inequity. C) Pareto inefficient with inequity. D) Pareto inefficient but is equitable.
Paper currency is a
A) fiat money. B) barter money. C) commodity money. D) bond.
Walmart, like many companies in the new economy, uses a hub-and-spoke distribution system to
A. decrease consumer demand. B. increase costs of stocking and inventory. C. change consumer attitudes toward warehouse shopping. D. decrease costs of stocking and inventory.