Imposing a unit excise tax on the final sale of a good or service can be displayed graphically as
A) a vertical shift upward of the demand curve.
B) a vertical shift upward of the supply curve.
C) a vertical shift downward of the demand curve.
D) a vertical shift downward of the supply curve.
Answer: B
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Which of the following is NOT necessary for price discrimination to occur?
A) The firm must be able to separate the market into identifiable groups. B) The firm must be selling a durable good. C) The firm must have a downward sloping demand curve. D) The firm has to be able to prevent resale of the product or service.
All students should go on to college.
A. True B. False C. Uncertain
If the price level is higher than expected, firms might raise their production in the short run if
a. the nominal wage they pay their employees was set based on the expected price level. b. prices are costly to adjust and they have set their price at some time in the past but are not ready to change it. c. they believe that the price of their product has risen relative to the price of other products, when in fact the rise in the price of their product reflects an increase in the general price level. d. All of the above are correct.
Fire protection and police protection may be provided more efficiently by the private sector than by the public sector.
Answer the following statement true (T) or false (F)