A tax on sellers:
A. causes equilibrium price to increase and equilibrium quantity to decrease.
B. cause equilibrium price and quantity to increase.
C. cause equilibrium price and quantity to decrease.
D. cause equilibrium price to decrease and equilibrium quantity to increase.
A. causes equilibrium price to increase and equilibrium quantity to decrease.
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All else held constant, if the price of a resource used to produce product X falls, the
A. demand curve of X will shift to the right. B. supply curve of X will shift to the left. C. supply curve of X will not shift. D. supply curve of X will shift to the right.
Under a gold standard,
a. a nation's currency can be traded for gold at a fixed rate b. a nation's central bank or monetary authority has absolute control over its money supply c. new discoveries of gold have no effect on money supply or prices d. prices are constant (there is no inflation and no deflation) e. all international transactions are financed with gold
If food is measured on the horizontal axis of budget line diagram, and clothing is measured on the vertical axis, an increase in
a. the price of clothing will make the budget line steeper b. income will make the budget line steeper c. income will make the budget line flatter d. the price of food will make the budget line steeper e. the price of food will make the budget line flatter
The distribution of income in a market economy is determined by the minimum wage laws.
Answer the following statement true (T) or false (F)