The imposition of a unit excise tax on red wine will
A) lower equilibrium price and quantity in the market.
B) increase equilibrium quantity and price in the market.
C) lower equilibrium quantity and raise equilibrium price in the market.
D) raise equilibrium quantity and lower equilibrium price in the market.
Answer: C
You might also like to view...
Which of the following is likely to lead to a partial recovery after a recession?
A) A decrease in money supply B) A decrease in tax rates C) A decrease in government spending D) An increase in the interest rate
If the Fed wants to depreciate the U.S. dollar against the British pound, it will ________
A) sell foreign exchange B) decrease the money supply C) sell British pounds D) sell U.S. dollars
Suppose that you own $10,000 worth of stock in General Motors. Adding stock in which of the following companies would be least likely to reduce the risk in your portfolio?
A) Google B) Walmart C) Ford D) General Electric
Which of the following is false?
a. A production possibilities curve represents the potential total output combinations of any two goods for an economy. b. On a production possibilities curve, we assume that the economy has a given quantity and quality of resources and technology available to use for production. c. If an economy is operating inside its production possibilities curve, it is not at full capacity, and is operating inefficiently. Such an economy's actual output is less than potential output. d. By putting unemployed resources to work or by putting already employed resources to better uses, we could shift out the production possibilities curve.