Figure 16.5Figure 16.5 depicts the market effects of a gasoline tax. How much of the gasoline tax per gallon is shifted forward on to consumers?
A. PA - PB
B. PA - PC
C. PB - PB
D. There is not sufficient information.
Answer: A
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In the above figure, if initial equilibrium is at point A and there is a fully anticipated increase in aggregate demand from AD1 to AD2 due to an anticipated increase in the money supply, then
A) the price level will shift to P2 in the long run. B) the economy will move directly from point A to point C without passing through point B. C) the price level will shift to P2 in the short run. D) the economy will move directly from point A to point B, and will remain at point B in the long run.
Which of the following statements is CORRECT?
A) Because information is different from typical goods and services, it cannot be provided in a market. B) The marginal benefit from more information does not decrease. C) Too little information is provided if the market for information is a monopoly. D) Acquiring more information can never be inefficient.
Refer to the payoff matrix below. If Camp R Us announces that it will offer special financing, Happy Campers ________ believe Camp R Us as their incentives ________ align.
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) should; do not B) should; do
C) should not; do D) should not; do not
Refer to the above figure. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new short-run equilibrium is given by point
A) A. B) B. C) C. D) D.