When a tax is imposed on the sellers of a good, the
a. demand curve shifts downward by less than the amount of the tax.
b. demand curve shifts downward by the amount of the tax.
c. supply curve shifts upward by less than the amount of the tax.
d. supply curve shifts upward by the amount of the tax.
d
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Answer the next question based on the data provided in the tables below regarding the production possibilities for rice and corn for two hypothetical nations, Wat and Xat. Wat's Production Possibilities ABCDEFRice7506004503001500Corn050100150200250Xat's Production Possibilities ABCDEFRice2,5002,0001,5001,0005000Corn0100200300400500The mutually beneficial terms of trade will be
A. between 3 and 5 units of rice for 1 unit of corn. B. greater than 6 units of rice for 1 unit of corn. C. between 3 and 5 units of corn for 1 unit of rice. D. less than 2 units of rice for 1 unit of corn.
Investment is
A) spending by businesses on things which can be used to produce goods and services in the future. B) the production of goods for immediate satisfaction. C) the purchasing of stocks and mutual funds. D) goods bought by households.
The notion that when the price of an input falls, a firm's marginal cost curve shifts down and overall production increases so that more of every input is employed is known as
a. the output effect. b. the substitution effect. c. the input effect. d. the cost effect.
According to the graph shown, if the government restricts trade, area G represents:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.
A. government tax revenues.
B. deadweight loss.
C. quota rents.
D. transferred surplus.