Neither the supply of nor demand for a good is perfectly elastic or perfectly inelastic. So, imposing a tax on the good results in a ________ in the price paid by buyers and ________ in the equilibrium quantity
A) rise; an increase
B) rise; a decrease
C) fall; an increase
D) fall; a decrease
E) rise; no change
B
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Steps in the transmission of monetary policy are
A) Congress increases the budget deficit, which increases the money supply, which increases aggregate supply. B) Congress increases the money supply, which lowers the interest rate, and leads to an increase in aggregate demand. C) the Federal Reserve lowers the federal funds rate, which lowers the real interest rate, and leads to an increase in aggregate demand. D) the Federal Reserve increases government expenditures on goods and services, leading to an increase in aggregate demand. E) Congress increases government expenditures on goods and services, leading to an increase in aggregate demand.
For many years short wave radios were a way of getting news from faraway places and in difficult conditions. But as new technologies have spread, the people listening to these devices has decreased
(Source: The Economist, July 7, 2012) As new technology creates substitutes for short-wave radios, the demand for short-wave radios ________ and the consumer surplus from short-wave radios ________. A) increases; increases B) decreases; decreases C) does not change; decreases D) decreases; does not change
Intellectual property refers to the ________ creations of ________ intelligence.
A) intangible; technical B) tangible; technical C) intangible; human D) tangible; human
A disadvantage associated with in-kind transfers to reduce poverty is that they
a. alter peoples' incentives, whereas a negative income tax does not alter peoples' incentives. b. do not allow poor families to make purchases based on their preferences. c. can only be distributed by the federal government. d. cannot restrict the group of recipients and some middle-class families may benefit from them.