If the same fine is imposed on buyers and sellers of an illegal good so that the cost of breaking the law is the same for both, then
A) there is more government revenue collected than with an excise tax on the good.
B) there is no deadweight loss in this market because the extra producer surplus will exactly offset the lost consumer surplus.
C) the supply and demand curves both shift leftward by equal amounts.
D) the equilibrium price of the good definitely increases.
C
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According to the textbook application, California’s urban smog problem
a. diminished because of the responsiveness of U.S. automobile manufacturers b. was never addressed by state legislation c. was linked through scientific study to auto emissions in the 1950s d. all of the above
To counter a speculative attack on an overvalued currency, the monetary policymakers must ________ monetary policy and to fight a recession the monetary policymakers must ________ monetary policy.
A. ease; ease B. tighten; tighten C. tighten; ease D. ease; tighten
The competitive firm's long-run supply curve is that portion of the marginal cost curve that lies above average
a. fixed cost. b. variable cost. c. total cost. d. revenue.
moral hazard
What will be an ideal response?