How would a new excise tax affect the supply curve?
(A) It would probably cause the supply curve to shift to the left.
(B) It would probably cause the supply curve to shift to the right.
(C) The effect cannot be determined without knowing the amount of the tax.
(D) It would not change the supply curve, because it would only move price.
Ans: (A) It would probably cause the supply curve to shift to the left.
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Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. What is Alice's marginal revenue function?
A. MR = 100 - 0.005QK - 0.01QA B. MR = 100 - 0.005QA - 0.005QK C. MR = 100 - 0.005QA - 0.01QK D. MR = 100 - 0.005QK - 0.005QA
For the United States since 1950, imports as a percentage of GDP has
A) tripled. B) increased slightly. C) remained constant. D) decreased.
Compared to higher-income families, low-income families would demand proportionately more of which of the following kinds of goods?
a. Luxury goods. b. Substitute goods. c. Normal goods. d. Inferior goods.
When banks use the money they receive from deposits to make loans, they:
A. decrease the money supply through open market operations. B. increase the money supply through open market operations. C. increase the money supply through the money multiplier. D. decrease the money supply through the money multiplier.