An expected tax cut will tend to cause
A) an increase in stock prices.
B) a reduction in stock prices.
C) no change in stock prices.
D) an ambiguous effect on stock prices.
C
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If the same fine is imposed on buyers and sellers of an illegal good so that the cost of breaking the law is the same for both, then
A) there is more government revenue collected than with an excise tax on the good. B) there is no deadweight loss in this market because the extra producer surplus will exactly offset the lost consumer surplus. C) the supply and demand curves both shift leftward by equal amounts. D) the equilibrium price of the good definitely increases.
What is the ratio that defines labor productivity?
A) (Y/N) B) (Y/Q) C) (Y/A) D) (Y/K)
Which of the following is an example of monetary policy?
a. Raising the interest rate b. Decreasing the tax rate c. Increasing the amount of government spending d. Fixing a price ceiling for necessary goods
Which U.S. industry appears to be the most oligopolist?
a. search engines
b. tire manufacturing
c. wireless telecommunications carriers
d. major household appliance manufacturing