A tax imposed on the sellers of a good will
a. raise the price paid by buyers and lower the equilibrium quantity.
b. raise the price paid by buyers and raise the equilibrium quantity.
c. raise the net price received by sellers and raise the equilibrium quantity.
d. raise the net price received by sellers and lower the equilibrium quantity.
A
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Often, the farther real GDP is below potential GDP,
A) the smaller the multiplier effect. B) the larger the multiplier effect. C) the less effective is the multiplier effect. D) the less meaningful is the multiplier effect.
The market mechanism may best be defined as
A. The use of market signals and government directives to select economic outcomes. B. The process by which the production possibilities curve shifts inward. C. The use of market prices and sales to signal desired output. D. Price regulation by government.
When a firm experiences declining long-run average total costs as it produces more output, it is known as a(n)
A) oligopoly. B) rent seeker. C) natural monopoly. D) monopolistic competitor.
Federal deficits had become pretty much an annual event during the 25-year period 1970–1995 . Deficits occur when
a. government spending is greater than tax revenue b. government spending equals tax revenue c. government spending is less than tax revenue d. government surpluses are taxed e. the national debt is reduced