If peanut butter and jelly are complements, then an increase in the price of peanut butter will reduce the demand for jelly.
Answer the following statement true (T) or false (F)
True
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The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S0 to S1. The total tax revenue is equal to
A) $400,000. B) $800,000. C) $500,000. D) $200,000. E) More information is needed to determine the total tax revenue.
Which of the following events would increase the unemployment rate, if nothing else changed?
A. Unemployed workers become employed B. Workers from outside the labor force become employed C. Employed workers leave the labor force D. Unemployed workers leave the labor force
When a positive externality is present in a market, total surplus is:
A. higher when buyers only consider private benefits. B. lower when buyers receive a Pigouvian subsidy for the externality. C. higher when buyers receive a Pigouvian subsidy for the externality. D. Any of these statements could be true.
An example of a good that is excludable is:
A. a park. B. a river. C. a boat. D. clean air.