Figure 4-7
Refer to . The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S1 to S2. Imposing the tax causes the equilibrium price of gasoline to increase from
a.
$.80 to $1.40.
b.
$.80 to $1.50.
c.
$.90 to $1.50.
d.
$.90 to $1.40.
d
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A product that has a negative income elasticity of demand is ________ good
A) a complementary B) a substitute C) a normal D) an inferior E) a negative
General-equilibrium analysis is the study of
A) how an equilibrium is determined in all markets simultaneously. B) how an equilibrium is determined in all closely related markets. C) the effects of a change in a market, and all spillover effects in all related markets. D) All of the above.
As of December 31, 2010, the assets listed on the balance sheet of Bank A were $1.5 million in cash reserves and $6 million in outstanding loans to its customers. Its liabilities totaled $6.5 million in checking deposits. What was the bank’s net worth on that date?
A. $1 million B. $4.5 million C. $5 million D. $14 million E. Zero
The relationship between the wage and the quantity of labor that a given worker is willing to provide is called:
A. individual labor demand. B. market labor demand. C. individual labor supply. D. market labor supply.