If a tax is imposed on a good,________
A) consumer surplus increases
B) producer surplus increases
C) the quantity of the good traded in the market increases
D) the equilibrium quantity of the good in the market falls
D
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A firm deciding how many hours to hire can be represented:
A. with an individual labor-supply curve. B. in the market labor-supply curve. C. with an individual labor-demand curve. D. in the market labor-demand curve.
The assumption that people act in their best self-interest means people
a. do what gives them the greatest benefits at the lowest costs. b. are selfish. c. do what gives them the smallest benefits at the greatest costs. d. are irrational.
Speculation serves the market in which of the following ways?
a. It helps smooth out price fluctuations. b. It raises the price of certain goods. c. It manufactures a demand for goods that would not ordinarily be found. d. It allows risk takers the ability to make large amounts of economic rent.
An accurate demand curve can be derived by examining the quantities of a good that are sold over time as the price varies
a. True b. False Indicate whether the statement is true or false