In spring 2008, the U.S. Congress proposed to tax oil companies because of their near-monopoly status. This could have the unintended consequence of
A) increasing the equilibrium price by more than the tax.
B) destroying the oil companies and leaving the United States without oil.
C) increasing the profit of the best oil company.
D) decreasing the power of the U.S. Congress.
A
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Refer to the figure above. The economy is currently at E. Which of the following is likely to happen if a recession hits the economy? Assume that wages are downwardly rigid
A) The labor market equilibrium will move from E to F. B) The labor market equilibrium will move from E to D. C) The labor market equilibrium will move from E to G. D) The labor market equilibrium will move from E to H.
Explain what scatter diagrams show and why we use them
What will be an ideal response?
Taxes can be progressive, regressive, or proportional
What will be an ideal response?
Private goods are characterized by:
A. rivalry and nonexcludability. B. rivalry and excludability. C. nonrivalry and nonexcludability. D. nonrivalry and excludability.