If a tax is increased,
a. consumers will pay a higher price
b. consumers will lose consumer surplus.
c. producers will receive a lower price after taxes.
d. all of the above are true.
d
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________ is the market value of final goods and services produced in a country in a given period of time?
A) Gross national product B) Gross domestic product C) Net national product D) Net domestic product
Which of the following will not contribute to higher wage rates for labor?
a. increased unionization and decreased nonunionization of employees in the economy b. a rapid increase in the demand for labor c. significantly relaxed immigration standards d. increases in technological advances that are substitutes for labor
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
Which of the following problems will most likely occur with a system of flexible exchange rates?
A. Macroeconomic instability as exports and imports fluctuate with the exchange rates. B. Government favoritism toward selected importers of goods and services. C. The emergence of black markets for foreign currency. D. Distortions in trade patterns away from the pattern suggested by comparative advantage.