Suppose that a per-unit subsidy is granted to each individual who consumes a product providing external benefits to society at large. Each individuals demand curve will shift ________, and the market demand curve for the product will shift ________.
A. to the right; to the left
B. to the right; to the right
C. to the left; to the left
D. to the left; to the right
Answer: B
You might also like to view...
Which of the following countries devote the smallest percentage of its GDP to taxes?
a. The United Kingdom. b. Sweden. c. Germany. d. The United States.
Suppose you sell a $1,000 bond that matures in 1 year for $950. Calculate the interest rate you will have to pay on this bond.
A) 0.95% B) 5.0% C) 5.3% D) 95%
The result of the supply shocks of 1973-1974 was to
A) reduce aggregate output and raise the price level. B) reduce the price level and raise aggregate output. C) reduce both aggregate output and the price level. D) raise both aggregate output and the price level.
Normative economic statements
A) are statements of "what ought to be." B) are statements of "what is." C) are statements that may be tested by referring to facts and data. D) do not involve value judgments.