An excise tax shifts the supply curve
A. by rotating it counter-clockwise.
B. down by the amount of the tax.
C. up by the amount of the tax.
D. by rotating it clockwise.
Answer: C
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The opportunity cost of going to a particular college is not the same for everyone
Indicate whether the statement is true or false
If differentiation makes the market demand curve less elastic, then
A) consumer surplus increases. B) the market structure changes into a monopoly. C) price markup over marginal cost is lower than when products are identical. D) price markup over marginal cost is higher than when products are identical.
Lags in the approval and implementation of fiscal policy: a. weaken fiscal policy as a tool of economic stabilization
b. increase the effectiveness of fiscal policy as a tool of economic stabilization. c. help legislators better assess what policies are most appropriate to adopt. d. make fiscal policy more responsive to the current economic environment. e. cause fiscal policy to be more effective at changing the level of real GDP than changing the price level only in the long run.
Short-run decisions refer to the:
A. hourly, daily, or weekly decisions that firms have to make. B. immediate decisions that firms have to make that affect the production process, not level of output. C. immediate decisions that firms have to make that affect level of output, but not the production process. D. decisions a firm has to make immediately to prepare for either entering or exiting an industry.