The imposition of a tax on a product
A) shifts the supply curve to the right.
B) shifts the demand curve to the right.
C) shifts both the supply and the demand curve to the right.
D) shifts the supply curve to the left.
Answer: D
You might also like to view...
The capital and financial account records
A) the current value of the balance of payments in U.S. dollars. B) all the purchases and sales of capital goods in the United States. C) imports and exports of capital goods. D) transactions involving trade, interest payments, and net transfers. E) transactions involving foreign investment in the United States and U.S. investment abroad.
In the long run, firms in monopolistic competition earn zero economic profit because
A) firms are free to enter and exit. B) their products are similar but slightly different. C) of over-reliance on product marketing. D) of collusion among the various sellers. E) their demand curves are horizontal.
Government actions to compel more competition in an industry
A) always entail costs, which must be compared to any gains created by the policy. B) always have the effect of lowering prices to consumers. C) cannot benefit anyone if they result in greater inefficiency. D) will result in lower prices but cannot bring about a larger output. E) will not succeed because competition, like morality, cannot be legislated.
Public debt promotes overconsumption if
a. foreigners hold the debt b. people fail to regard bonds as their personal assets c. people view the government's liabilities as their own d. the Federal Reserve buys bonds e. people regard their bond holdings as part of their savings