All other things unchanged, a tax on a product that leads to an increase in the cost of production would:
A) lead to an increase in supply.
B) lead to a decrease in demand.
C) result in an increased price.
D) lead to a decrease in supply.
Ans: D) lead to a decrease in supply.
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During periods of unemployment
A) the economy operates at a point inside the production possibilities curve. B) the economy operates at a point outside the production possibilities curve. C) the production possibilities curve shifts inward. D) the production possibilities curve shifts outward.
A shock that could trigger a recession is a
a. large increase in oil prices b. stock market bubble c. sudden increase in military spending d. large decrease in oil prices e. sudden decrease in the interest rate
Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.
A U.S. tariff on oil would reduce the domestic quantity of oil supplied.
Answer the following statement true (T) or false (F)