Rather than prohibiting a good or service, the government might tax it. Imposing such a tax on a good or service ________ the equilibrium price and ________ the equilibrium quantity
A) raises; increases
B) raises; decreases
C) lowers; increases
D) lowers; decreases
B
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The use of eminent domain to seize private property always results in an increase in cooperative surplus
Indicate whether the statement is true or false
If adopted by a firm, a labor-saving piece of technology is one that would:
A. decrease labor supply. B. decrease labor demand. C. increase labor supply. D. increase labor demand.
As one moves down a straight-line, down-sloping demand curve, price elasticity will:
A. change from elastic, to unit elastic, then to inelastic. B. remain the same between any two points. C. change from inelastic, to elastic, then to unit elastic. D. change from unit elastic, to elastic, then to inelastic.
A firm's isocost line shifts parallel inward from the original isocost line as its
A. total cost for capital and labor increases. B. total cost for capital increases and its total cost for labor decreases. C. total cost for capital decreases and its total cost for labor increases. D. total cost for capital and labor decreases.