Assume that the graphs show a competitive market referenced in the question below.
Select the graph that best shows the change in the market following a tax placed on the buyers in the market.
A. graph (1)
B. graph (2)
C. graph (3)
D. graph (4)
Answer: B
You might also like to view...
A person who uses a rule of thumb to determine the best rate of savings:
A. is necessarily making a mistake, since finding the best rate of savings involves complex mathematical models. B. is necessarily making a mistake, since there is no single best rate of savings. C. is not necessarily making a mistake because rules of thumb often arise out of trial and error or from observation of others' successful decisions. D. is not necessarily making a mistake because, in the long run, all rates of savings turn out to yield the same economic benefit.
Oligopoly firms: a. usually act as if they were a monopoly producer
b. generally charge a price for goods and services equal to marginal cost. c. base their pricing and output decisions on the likely responses of rival firms. d. are isolated from competition by low barriers to entry.
Which of the following are necessary characteristics of a monopoly? (i) The firm is the sole seller of its product. (ii) The firm's product does not have close substitutes. (iii) The firm generates a large economic profit. (iv) The firm is located in a small geographic market
a. (i) and (ii) only b. (i) and (iii) only c. (i), (ii), and (iii) only d. (i), (ii), (iii), and (iv)
Which of the following would likely not be a goal of a union?
A. Increasing the size of the union B. Increasing union income C. Increasing wages of union members D. Increasing wages of nonunion members