In a market with a downward-sloping demand curve and an upward-sloping supply curve, a law requiring sellers to pay the government a tax of $1.00 per pack on cigarettes has the effect of:
A. shifting the supply curve to the right and increasing the price buyers pay by $1.00.
B. shifting the demand curve to the right and increasing the price buyers pay by $1.00.
C. shifting the supply curve to the left and increasing the price buyers pay by less than $1.00.
D. shifting the demand curve to the left and increasing the price buyers pay by less than $1.00.
Answer: C
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If lenders anticipate no changes in liquidity, information costs, and tax differences, the yield on a risky security should be
A) greater than that on a safe security and the price of a risky security should also be greater than that of a safe security. B) less than that on a safe security and the price of a risky security should also be less than that of a safe security. C) greater than that on a safe security and the price of a risky security should be lower than that of a safe security. D) less than that on a safe security and the price of a risky security should be greater than that on a safe security.
Explain briefly the vent-for-surplus theory of international trade. What is the relevance of this theory to the current development experience of low-income economies?
What will be an ideal response?
Corruption is only present in developing nations
Indicate whether the statement is true or false
Refer to the data. At 6 units of output, total fixed cost is ____ and total cost is ____.
A. $25; $50
B. $50; $300
C. $100; $200
D. $150; $300