An excess quantity supplied can be corrected by
A. a decrease in demand.
B. legally fixing the price at its present level.
C. a fall in price.
D. an increase in supply.
Answer: C
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The above figure shows the demand and cost curves for a firm in ________ in the ________
A) perfect competition; short run B) monopolistic competition; long run C) perfect competition; long run D) monopolistic competition; short run
Current research suggests that countries that adopt a pegged exchange rate may be more vulnerable to an exchange rate crisis
Indicate whether the statement is true or false
Horizontal equity incorporates the notion that
A. those earning higher incomes should pay more in taxes. B. those earning equal incomes should pay the same in taxes. C. taxes paid should be unassociated with income levels. D. there should be no excess burden created by a tax.
Figure 4.4 illustrates the supply of tacos. If the government offered a subsidy to Mexican restaurants for each taco they produce, this would most likely cause a movement from:
A. point a to point c. B. point c to point b. C. S2 to S1. D. S0 to S1.