The graphs below illustrate the market for a product on which an excise tax has been imposed by government. Refer to the below graph. What was the price of the product before the tax was imposed, and what is the price with the tax?
A. $8 and $5, respectively
B. $11 and $8, respectively
C. $8 and $11, respectively
D. $5 and $8, respectively
C. $8 and $11, respectively
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Suppose that a large country imposes optimal tariffs on imports from another large country. The second country then responds with optimal tariffs on imports from the first country. For these two countries, the Nash equilibrium results in ___________ for the first country and __________ for the second country.
a. losses; losses b. gains; gains c. losses; gains d. gains; losses
Which one of the following is not a function of money?
A. open market operation B. store of value C. medium of exchange D. unit of account
Which of the following would cause an increase in aggregate demand in the short run?
A. an increase in the supply of money B. a decrease in the price level C. an increase in taxes D. a crop failure
Munn v Illinois (1877) was particularly important with regard to government regulation because it
(a) upheld the traditional right of businesses to act freely without interference by government. (b) established the right of government to regulate any business that was deemed "clothed" in the public interest. (c) established the right of government to regulate any and all businesses wherever such regulation was deemed desirable to promote competition. (d) established the right of government at any level to regulate any business activity if such regulation was deemed desirable for any reason.