A tax on sellers:
A. shifts the demand curve vertically downwards by the amount of the tax, but does not affect the supply curve
B. causes equilibrium price and quantity to decrease.
C. causes a shortage in the market.
D. shifts the supply curve vertically upwards by the amount of the tax, but does not affect the demand curve.
Answer: D
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This table shows the different combinations of goods that Jack can consume, given that his income to spend on these two items is $10. Considering the information in the table shown, if Jack's income to spend on these two items were to increase to $16:
A. he could afford to buy 16 popsicles and 8 ice cream cones. B. he could afford to buy either 16 popsicles or 8 ice cream cones. C. he could afford to buy 8 ice cream cones and 4 popsicles. D. None of these is true.
If nation A has an absolute advantage over nation B in the production of a product, this implies that:
a. it requires fewer resources in A to produce the good than in B. b. the cost of producing the good in terms of some other good's production that must be sacrificed is lower in A than in B. c. nation B could not benefit by engaging in trade with A. d. nation A should acquire this product by trading with B. e. nation A could not benefit by engaging in trade with B.
The Monetary Control Act of 1980:
a. created less competition among various financial institutions. b. allowed fewer institutions to offer checking account services. c. restricted savings and loan associations to long-term loans. d. all of the above. e. none of the above.
Adverse selection may lead to
a. owners of used cars choosing to keep them rather than sell them at the low price that skeptical buyers are willing to pay. b. wages being stuck above the level that balances supply and demand, resulting in unemployment. c. buyers with low risk choosing to remain uninsured because the policies they are offered fail to reflect their true characteristics. d. All of the above are correct.