Ceteris paribus, which of the following would cause the aggregate demand curve to shift to the left?
a. lower personal taxes
b. a rise in consumer confidence
c. greater stock market wealth
d. a reduction in transfer payments
d
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Over the past fifty years, there has been substantial closure of the gap in real GDP per person between which of the following groups of countries?
A) the United States and Central and South America B) Africa and Western Europe C) Central and South America and Africa D) the United States and Japan
The source of the adverse selection problem is ______
a. that individuals with high incomes are able to pay all medical costs out-of-pocket b. that individuals least likely to need health care do not purchase insurance c. individuals lack important information regarding the appropriate health care for them d. individuals desire to have comprehensive health care insurance
Mamma's Honey sells locally produced raw honey at an equilibrium price of $12 a jar and an equilibrium quantity of 200 jars. Which of the following is most likely to be true if the government begins to pay a $3-per-jar subsidy to the seller? a. The price paid by buyers will increase
b. The price received by sellers will decrease. c. The quantity demanded by buyers will decrease. d. Total surplus will decrease.
A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade):$20 per bottleDomestic production (free trade):500,000 bottlesDomestic production (after tariff):600,000 bottlesDomestic consumption (free trade):750,000 bottlesDomestic consumption (after tariff):650,000 bottles The imposition of the tariff on wine will cause the surplus of the domestic consumers to ________ by about
A. fall; $3.5 million. B. fall; $10 million. C. rise; $3.5 million. D. fall; $250,000.