The government of Marina imposes a tax on alcoholic beverages because of the increasing costs of sending first responders to accidents that are caused by drunk driving. This is an example of a _____
a. cap-and-trade tax
b. corrective tax
c. gift tax
d. property tax
b
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Refer to the above figure. Which one of the following statements is TRUE with regard to the economy depicted in the graph?
A) Point C cannot be produced. B) The best production point is 500 loaves of bread and 50 bales of wool. C) The total amount of resources it takes to produce 20 bales of wool and 500 loaves of bread is more than the amount of resources needed to produce 50 bales of wool and 250 loaves of bread. D) The total amount of resources it takes to produce 20 bales of wool and 500 loaves of bread is the same as the amount of resources needed to produce 50 bales of wool and 250 loaves of bread.
Under the Bretton Woods agreement,
a. nations could not adjust their exchange rates relative to the dollar for any reason b. exchange rates were based on a market basket of European currencies plus the dollar c. the United States stood ready to convert foreign holdings of dollars into gold at a fixed rate of $35 per ounce d. the international monetary system operated exactly like the gold standard of pre-World War II years e. gold played no role in the international monetary system
What happens to the equilibrium price and quantity in the market for science fiction novels, a normal good, when income increases and a new technology is invented, making it easier to publish books.
a. Quantity and price both increase. b. Quantity and price both decrease. c. Quantity will increase and the price change is ambiguous. d. Price will decrease but the quantity change is ambiguous.
Oligopoly and monopolistic competition can be described as industries where firms
a. have high barriers to entry b. produce identical goods c. are located near each other d. produce close substitutes e. aspire to become perfect competitors