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) S0 to S1. D) S2 to S1.
C
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If the government announces a new increase in spending with no change in taxes, which of the following would most likely occur?
a. No change in the aggregate demand curve as well as no movement along it b. A leftward shift of the aggregate demand curve c. An upward movement along the aggregate demand curve d. A rightward shift of the aggregate demand curve e. A downward movement along the aggregate demand curve
A firm in a perfectly competitive market
a. can raise the price to sell more but by selling more will end up earning less economic profit than it had earned before the price increase b. can cut the price to sell more but by selling more will end up earning less economic profit than it had earned before the price cut c. can increase its supply to lower the price and thereby raise its economic profit d. can decrease its supply to raise the price and thereby raise its economic profit e. is a price taker, that is, accepts the market price for its good as given
In the United States, all ozone-depleting substances were phased out by 2005 with the exception of
a. CFCs b. halons c. methyl bromide d. HCFCs e. none of the above
Studies of human decision making have found that people are reluctant to change their minds
a. True b. False Indicate whether the statement is true or false