Private subsidies granted to producers affect
A) the supply side of the market by shifting the supply curve.
B) the demand side of the market by shifting the demand curve.
C) property rights.
D) transaction costs.
E) both the supply side of the market and the demand side because they shift both the supply curve and the demand curve.
A
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See Scenario 4.1. Holding Daniel's income and Pd constant at $240 and $3 respectively, what is Daniel's demand curve for cake?
A) Qc = 240 - Pc B) Qc = 240/Pc C) Qc = 120/Pc D) Qc = 240/(3 + Pc) E) none of the above
Harold, a delivery man, washes and irons his own shirts. Sarah, his boss, sends her clothes to a laundry. Which is the most plausible economic explanation for this difference?
a. Harold must enjoy ironing more than Sarah does. b. Harold must be better at ironing than Sarah is. c. The opportunity cost of ironing is greater for Harold. d. Harold probably has an absolute advantage in ironing. e. Sarah has a higher opportunity cost of laundering her clothes than Harold does.
Inflation can only be caused by an increase in aggregate demand
a. True b. False Indicate whether the statement is true or false
The result of the balanced budget multiplier is that aggregate demand changes by the amount of the change in:
a. government spending. b. tax revenue. c. government spending plus tax revenue. d. government spending minus tax revenue.