The imposition of a sales tax on eggs will:
a. Cause a parallel shift downward in demand for eggs.
b. Cause a parallel shift upward in demand for eggs.
c. Lead to an increase in the slope of the demand curve for eggs.
d. Have no effect in demand or sales of eggs since they are a small part of any family's budget.
a. Cause a parallel shift downward in demand for eggs.
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When the domestic price level increases, exports decrease and imports increase. Other things the same, this change is illustrated by a
A) movement upward along the aggregate demand curve. B) movement downward along the aggregate demand curve. C) rightward shift of the aggregate demand curve. D) leftward shift of the aggregate demand curve. E) rightward shift of the aggregate supply curve.
If Canada imports fishing poles from Mexico and Mexico imports bacon from Canada, which of the following would explain this pattern of trade?
A) The opportunity cost of producing fishing poles in Canada is higher than the opportunity cost of producing bacon in Mexico. B) Mexico has a higher opportunity cost of producing fishing poles than Canada, and Canada has a higher opportunity cost of producing bacon. C) Mexico must have an absolute advantage in producing fishing poles and Canada must have an absolute advantage in bacon. D) Mexico has a lower opportunity cost of producing bacon than Canada and Mexico has a comparative advantage in producing fishing poles.
Suppose you are the manager of Big Boards, a firm that produces particle board. To make your particle board, you purchase sawdust from timber farms. During the process of harvesting timber, both lumber and sawdust are produced. If the demand for lumber decreases, this will cause the production of sawdust to ________ and the price of sawdust to ________.
A) decrease; fall B) increase; fall C) increase; rise D) decrease; rise
Which of the following statements about voting is NOT true?
a. Voting theory posits that a majority vote by itself may indicate nothing at all about society's preferences. b. In those situations where voting does occur, it can have imperfections, just like markets might. c. There will be occasions when voters can advance their individual interests by misrepresenting their preferences or purchasing each other's votes. d. It is possible to devise a voting method in which the outcomes always have certain desirable properties for all possible sets of voter preferences.