Economic problems are made manageable by stripping away some of the unnecessary details.
Answer the following statement true (T) or false (F)
True
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Refer to Figure 9.2. A movement from point b to point d could be caused by a(n)
A) decrease in government spending. B) increase in the price of oil. C) decrease in taxes. D) increase in short-run aggregate supply.
If the minimum wage were currently above the equilibrium wage, then a decrease in the minimum wage that kept it above the equilibrium wage would
a. increase the surplus of labor. b. reduce the surplus of labor. c. increase the shortage of labor. d. reduce the shortage of labor,
The law of demand is derived under the assumption of
A) constant prices. B) constant real incomes. C) constant consumer tastes and preferences. D) constant marginal utility.
Refer to Scenario 19.3 below to answer the question(s) that follow. SCENARIO 19.3: Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit.Refer to Scenario 19.3. What is the total burden of the tax?
A. $4 B. $36 C. $64 D. $100