A taxcredit fora clean fuel vehicle
a. acts as a subsidy to encourage consumption, by increasing the MPB
b. can be modeled as a shift up of the MEB
c. is represented as a shift down of the MPB by the amount of the tax credit
d. raises the effective price of the vehicle, discouraging consumption
a. acts as a subsidy to encourage consumption, by increasing the MPB
You might also like to view...
The figure above shows the market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year. The price of cotton in Georgestan is
A) 30 cents per pound. B) 40 cents per pound. C) 60 cents per pound. D) 50 cents per pound.
Which of the following is a TRUE statement?
A) Everyone benefits from free trade. B) Exporters benefit from trade and importers do not. C) Consumers benefit from trade and producers do not. D) Free trade harms domestic producers of goods that face import competition.
The information in the above table gives the 2000 base period market basket and prices used to construct the CPI for a small nation. The table also has 2010 prices. What is the value of the CPI for the base period 2000?
A) 140 B) 100 C) 30 D) 75 E) 133
A reason why an increase in the price level decreases the quantity of real GDP demanded is that
A) the buying power of money increases. B) potential GDP decreases. C) the price of domestic goods and services increases relative to foreign goods and services. D) the real interest rate falls. E) the inflation rate decreases.