If a tax is levied on the sellers of a product, then the demand curve will
A. become flatter.
B. shift up.
C. not shift.
D. shift down.
C. not shift.
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According to the graph shown, if the economy is operating under free trade, who would be opposed to a tariff?
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. Foreign producers
B. Domestic consumers
C. Domestic producers
D. Both A and B would be opposed to a tariff.
Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment best describes the workers' situation?
A. Frictional unemployment B. Full unemployment C. Cyclical unemployment D. Structural unemployment
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.
According to the interest-rate-based monetary policy transmission mechanism, a decrease in the money supply will
A. lead to an increase in investment spending and a decrease in real GDP which is greater than the increase in investment spending. B. lead to an increase in investment spending and a decrease in real GDP that is equal to the increase in investment spending. C. lead to a decrease in investment spending and a decrease in real GDP which is greater than the decrease in investment spending. D. lead to a decrease in investment spending and an increase in real GDP that is equal to the decrease in investment spending.