The government imposes a $2.50 per-unit tax on the production of good X. As a result the
A) supply curve for good X shifts leftward and the price of good X rises.
B) quantity supplied of good X falls and the price of good X rises.
C) demand curve for good X shifts leftward and the price of good X falls.
D) supply curve for good X shifts rightward and the price of good X falls.
E) supply curve for good X shifts leftward and the price of good X falls.
A
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For any transaction, the sum of consumer surplus and producer surplus is cooperative surplus
Indicate whether the statement is true or false
If insurers charge everyone the same premium based on the average cost of insuring the entire group, _____
a. the poor will drop out because the premiums are too high b. the middle class individuals will drop out because they can self-insure c. the healthiest individuals in the market will drop out d. the sickest individuals in the market will drop out
A production or consumption quota that can be bought or sold is called:
A. a buyers' or sellers' quota. B. a tax. C. a tradable allowance. D. a subsidy.
An outward shift of the production possibilities curve demonstrates
A. a recession. B. economic growth. C. a cyclical shock. D. an increased rate of inflation.