Suppose cars are taxed according to the amount of pollution they emit per gallon of gasoline consumed. We would expect to observe all of the following EXCEPT
A) an increase in quantity demanded of less-polluting automobiles and a reduction in quantity demanded of more-polluting automobiles.
B) an increase in quantity demanded of more fuel-efficient cars.
C) an increase in production of automobiles that were less polluting.
D) an increase in the miles driven.
D
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Other factors constant, the future value will be smaller:
A. The larger is its present value B. The higher is the interest rate C. The shorter is the time period t D. The larger is the number of periods
Which of the following statements is true?
A) The government plays absolutely no role in economies characterized by communism. B) Competition among firms is likely to be higher in communist economies than in market economies. C) The government plays absolutely no role in economies characterized by market economies. D) Competition among firms is likely to be higher in market economies than in communist economies.
Which of the following explains why supply is more elastic as more time passes?
A) It is difficult or impossible to increase the quantity produced in a short period of time. B) Consumers have more time to search for substitutes. C) Sellers try to take advantage of a high price in the short term. D) The supply curve becomes generally steeper as more time passes. E) There is no explanation for this phenomenon.
If a buyer's reservation value for a good is $15 and the price at which he purchases the good is $8, his consumer surplus is:
A) $7. B) $1.8. C) -$7. D) $120.