A sales tax on sellers of a good shifts the supply curve leftward because the tax is like a cost of production
Indicate whether the statement is true or false
TRUE
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In a market economy, supply and demand are important because they
a. are direct policy tools used by government agencies to regulate the economy. b. illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium. c. can be used to predict the impact on the economy of various events and policies. d. All of the above are correct.
Unless there are barriers to prevent free international trade, a country becomes an importer when the world price exceeds the domestic price. In contrast, a country becomes an exporter when the world price is less than the domestic price
Indicate whether the statement is true or false
The idea that firms and resource suppliers, while seeking to further their own self-interests in a market economy, also promote the public interest describes:
A. "dollar votes." B. the "invisible hand." C. the guiding function of prices. D. capital accumulation.
An oligopolistic industry is characterized by all of the following except
A) production of standardized or differentiated products. B) firms pursuing aggressive business strategies, independent of rivals' strategies. C) existence of entry barriers. D) the possibility of reaping long-run economic profits.