An increase in the demand for GM automobiles results in:
A. an increase in the supply of GM automobiles.
B. a lower equilibrium price for GM automobiles.
C. an increase in the quantity supplied of GM automobiles.
D. a lower equilibrium quantity of GM automobiles.
Answer: C
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A sales tax is imposed on the sellers of gasoline. This tax shifts
A) the supply of gasoline curve leftward. B) the supply of gasoline curve rightward. C) the demand for gasoline curve leftward. D) both the supply curve of gasoline and demand curve for gasoline leftward.
A cartel maximizes industry profit by:
a. eliminating quotas. b. producing at the kink in its demand curve. c. producing where MR = MC. d. giving secret price concessions. e. producing more output than a monopoly would.
When the value of our goods exports is less than the value of our goods imports,
a. d and e. b. the value of the dollar must fall. c. there will be domestic unemployment. d. there will be an unfavorable balance of trade. e. foreign currency reserves must fall.
With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?
a. passage of legislation reducing the workweek to 30 hours b. instituting a tax policy encouraging consumption at the expense of investment c. instituting a tax policy encouraging investment at the expense of consumption d. an increase in the marginal income tax rate, which would reduce the work effort of individuals