A $5 tax levied on the buyers of pants will cause the
a. supply curve for pants to shift down by $5.
b. supply curve for pants to shift up by $5.
c. demand curve for pants to shift down by $5.
d. demand curve for pants to shift up by $5.
c
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If all unwelcome or harmful activities were eliminated,
a. the benefits from eliminating these activities would exceed the cost of eliminating them b. there would be no remaining potential Pareto improvements c. society would be more efficient d. society would be less efficient e. the result would be Pareto efficient
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and reserve-related (central bank) transactions become more negative (or less positive). b. The GDP Price Index falls, and reserve-related (central bank) transactions remain the same. c. The GDP Price Index and reserve-related (central bank) transactions remain the same. d. The GDP Price Index rises, and reserve-related (central bank) transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Figure 9.5Figure 9.5 shows the short-run and long-run effects of an increase in demand of an industry. The market is in equilibrium at point A, where 100 identical firms produce 6 units of a product per hour. If the market demand curve shifts to the right, what will happen to the number of firms in the industry as the industry moves from point A to point B?
A. It increases. B. It decreases. C. It remains the same. D. either It increases or It decreases or It remains the same
Comparing the United States economy in the 1920s with the economy in the 1990s, all of the following were similar EXCEPT
A. both decades had strong economic expansion. B. both decades had soaring stock markets. C. both decades had rapid technological progress. D. both decades had the federal government take a laissez-faire approach to the economy.