If a Pigovian tax is levied on producers, the supply curve will shift:
A. straight up, decreasing quantity.
B. straight down, decreasing quantity.
C. straight up, increasing quantity.
D. straight down, increasing quantity.
A. straight up, decreasing quantity.
You might also like to view...
Why do countries peg their currencies, and what problems can result from pegging?
What will be an ideal response?
When the BEA calculates real GDP using the average of prices in the current year and the year preceding it, and this average changes from year to year, this is called calculating GDP using
A) current-year prices. B) fixed-weight prices. C) fixed base-year prices. D) chained-weighted prices.
Market power and market concentration
A) are directly related. B) are indirectly related. C) are inversely related. D) are not related.
A country possesses a comparative advantage in the production of a good if
A) the opportunity cost in terms of forgone output of alternative goods is lower for this country than it is for its trading partners. B) it possesses an absolute advantage in the production of this good. C) it is able to produce more of this good per hour than can any other country. D) all of the above.