Hurricane Katrina damaged a large portion of oil refining and pipeline capacity in the Gulf coast states. In the market for gasoline
A) the demand curve shifted to the left resulting in a decrease in the equilibrium price.
B) the supply curve shifted to the left resulting in an increase in the equilibrium price.
C) the demand curve shifted to the right resulting in an increase in the equilibrium price.
D) the supply curve shifted to the right resulting in an increase in the equilibrium price.
B
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A specific tax in a monopoly market equal to the marginal harm of pollution
A) will increase welfare. B) will decrease welfare. C) will leave welfare unchanged. D) All of the above are possible.
Piece rates are used when:
a. an individual's output is independent of others and can be easily measured. b. the job involves team production. c. an individual's output can be affected by random events. d. monitoring is difficult.
The "donut hole" in Medicare Part D coverage refers to the fact that
A. coverage begins with the first dollar of prescription drug spending, then drops to zero after a particular level of spending, and then increases again. B. coverage ends for those who spend a great deal on prescription drugs. C. coverage begins only after individuals pay a significant portion of their prescription drug costs. D. police are covered more generously than firefighters.
Aggregate demand increases if the quantity of money ________
A) decreases or tax rates increase B) or transfer payments decrease C) remains constant or tax rates increase D) increases or tax rates decrease