The demands of World War II caused our AD curve to shift to the
a. left and our AS curve to shift to the left
b. left and our AS curve to shift to the right
c. right and our AS curve to shift to the left
d. right and our AS curve to shift to the right
e. right, leaving our AS curve unchanged
C
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When buying a car from a dealer, to get a better bargaining position
a. Always carry your check book to show willingness to buy b. Carry only blank checks to ease the transaction c. Carry a cashier check that cannot be modified d. All of the above
In order to achieve a high rating on the Economic Freedom of the World index, a country must
a. provide for the even-handed protection of private property and rely primarily on open markets and voluntary exchange to coordinate economic activity. b. use central planning to direct investment and resolve the three basic economic problems of what, how, and for whom goods will be produced. c. protect domestic businesses from foreign rivals who generally provide shoddy products. d. protect domestic workers from businesses that are unwilling to pay high wages and provide quality working conditions.
Figure 18-3
In which panel of Figure 18-3 would an excise tax be borne entirely by the consumer?
A. 1 B. 2 C. 3 D. 4
This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope.
A state initiative requiring towns to spend at least $20 per day on litter removal would be ________ because ________.
A. efficient; it solves the inefficiency created by the negative externality B. efficient; reducing litter is socially optimal C. inefficient; the marginal cost of litter removal would exceed the marginal benefit D. inefficient; $20 is insufficient to remove all of the litter