Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and St represents the after-tax supply curve, then the revenues that the government collects from imposing this tax is represented on this graph by
A. BAEC.
B. OAEG.
C. CEF.
D. OBCG.
Answer: A
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Amusement parks often offer discounts to locals with IDs. This is an example of
a. A direct discrimination scheme b. An indirect discrimination scheme c. Diminishing marginal returns d. Vertical integration
Which of the following will cause an inward shift in the demand for steaks at a restaurant?
a. A report by the American Medical Association states that the consumption of steak reduces the risk of cardiovascular disease b. A 50 percent reduction in the price of steaks c. A double-digit increase in the price of chicken d. A recession leading to a significant fall in the income levels of consumers e. The expectation that the price of steaks will double within two months
The difference between the value of a country's merchandise exports and merchandise imports is known as the balance
a. of payments. b. of merchandise trade. c. on current account. d. on capital account.
Assume the demand schedule for product C is downsloping. If the price of C falls from $2.00 to $1.75:
A. the demand for C will decrease. B. a larger quantity of C will be demanded. C. the demand for C will increase. D. a smaller quantity of C will be demanded.