Government intervention can be justified on efficiency grounds when at least one of the efficiency conditions are not being met.
Answer the following statement true (T) or false (F)
True
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Suppose interest rates in foreign countries increase relative to the U.S. interest rate. As a result, there is ________ the demand curve for dollars
A) a downward movement along B) a leftward shift of C) a rightward shift of D) an upward movement along E) neither a movement along nor a shift of
An analysis of the incidence of a unit tax on suppliers versus a unit tax on demanders shows us that the _____ of a tax may be different from the _____ of a tax
a. actual burden; distribution b. payment; distribution c. amount; incidence d. actual burden; legal assignment
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
If a union succeeds in increasing the wage rate by restricting labor supply, then
A) all of its members will be better off. B) some members may lose their jobs. C) all of its members will be worse off. D) more of its members will be employed.