Imposing a unit excise tax on the final sale of a good or service can be displayed graphically as
A. a vertical shift downward of the demand curve.
B. a vertical shift upward of the demand curve.
C. a vertical shift upward of the supply curve.
D. a vertical shift downward of the supply curve.
Answer: C
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Is the minimum wage fair?
A) Yes, because all workers benefit because they are paid more. B) No, because it enhances the prospects of voluntary exchange. C) No, because workers who lose their jobs are made worse off. D) Yes, because firms must pay a wage closer to a living wage. E) Yes, because workers need the extra income.
In the worst case scenario, the combined marginal tax rate of cash and in-kind programs combined could be equal to or greater than 100%
Indicate whether the statement is true or false
The coefficient of determination measures the proportion of the variation in the independent variable that is "explained" by the regression line
a. true b. false
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The GDP Price Index rises and nominal value of the domestic currency remains the same. b. The GDP Price Index falls and nominal value of the domestic currency remains the same. c. The GDP Price Index and nominal value of the domestic currency remain the same. d. The GDP Price Index rises and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.