Refer to the given data. If government levies a per-unit excise tax of $1 on suppliers of this product, equilibrium price and quantity will be:
A. $9 and 3,000.
B. $7.50 and 2,250.
C. $8.50 and 2,250.
D. $7 and 3,000.
C. $8.50 and 2,250.
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If an increase in investment of $50 causes an increase in real GDP of $250, the value of the spending multiplier is:
a. 5. b. .20. c. .80. d. 3. e. 10.
First and foremost, a market consists of
a. substitute goods b. complementary goods c. goods produced by the same firm d. goods produced with the same inputs e. goods that serve dissimilar purposes, which is why they are grouped
Keynesian economists believe that
a. the velocity of money is stable b. changes in the money supply do not affect output c. there is a one-to-one correspondence between M and P in the equation of exchange d. the velocity of money is predictable e. the velocity of money is affected by changes in expectations
Cookies would be considered:
A. a public good. B. an artificially scarce good. C. a private good. D. a common resource.