A unit tax of $10 has been levied on a good. The equilibrium price of the good will most likely
A) increase by $10.
B) remain unchanged.
C) decrease by $10.
D) increase by an amount less than $10.
Answer: D
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Refer to Figure 5-2. The deadweight loss due to the externality is represented by the area
A) abc. B) abd. C) abf. D) ade.
What is one reason drunk driving is held in such disrepute?
A) Drunk driving imposes high potential costs on non-drunk drivers. B) Drunk driving destroys cars and telephone poles, causing disruption in essential services. C) Only drunk drivers cause automobile fatalities. D) Drunk drivers impose high potential costs on other drunk drivers.
The manufacturers of information products typically
A) have low fixed costs. B) have high marginal costs. C) have high fixed costs. D) have zero fixed costs.
In the economy of Talikastan in 2015, consumption was $800, GDP was $2000, government purchases were $400, and investment was $600 . What were Talikastan's net exports in 2015?
a. -$200 b. $200 c. $1800 d. Net exports cannot be calculated from the information given.