If the government imposes an excise tax on cars equal to $5,000 per automobile, the supply of automobiles will shift to the:
A. right and the price of automobiles will decrease by an unknown amount.
B. right and the price of automobiles will decrease by $5,000.
C. left and the price of automobiles will increase by $5,000.
D. left and the price of automobiles will increase by an unknown amount.
Answer: D
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Other things being equal, an increase in the supply of money
A) reduces the amount of money balances. B) reduces aggregate demand. C) generates significant changes in relative prices. D) increases the price level.
A consumer values a car at $30,000 and a producer values the same car at $20,000 . If the transaction is completed at $24,000 . what level of sales tax will result in unconsummated transaction?
a. 0% b. 25% c. 20% d. 40%
The circular flow model:
A. illustrates how natural resources are created. B. illustrates how money is created by the banking system. C. assumes that central planning is taking place. D. illustrates the interdependence of businesses and consumers.
The circular flow model shows that goods and services flow from
A) businesses to households. B) households to business. C) the factor market to businesses. D) the goods market to businesses. E) the factor markets to the goods markets.