Since demanders of a good are concerned with the total price they have to pay for a good, a unit tax on the good will _____
a. shift the supply curve downward by the entire amount of the tax
b. shift the supply curve upward by the entire amount of the tax
c. shift the demand curve downward by the entire amount of the tax
d. shift the demand curve upward by the entire amount of the tax
c
You might also like to view...
Even if the City Council fixed high minimum taxi fares and gave licenses to operate to only a few cab owners, license holders would not earn large profits from operating taxis in the city because
A) people would drive their own cars. B) people would substitute buses for taxis. C) taxis are not a necessity of life. D) the cost of owning a license would eat up the potential profits from operating a taxi. E) the demand would fall as taxi fares rose.
Classical economists believe that in the short run
A) money neutrality exists and prices adjust rapidly. B) money neutrality does not exist and prices adjust rapidly. C) money neutrality exists and prices do not adjust rapidly. D) money neutrality does not exist and prices do not adjust rapidly.
The primary criticism by Keynesians of the credibility argument for rules is that
A) reputations are a less costly method of gaining credibility. B) reputations are a less costly method of maintaining credibility. C) the cost of losing flexibility over policy choices may exceed the cost of gaining credibility. D) rules that reduce presidential and congressional influence over monetary policy could ultimately be harmful to the economy.
The Cobb-Douglas production function represents real GDP as a function of all of the following variables except
A) capital. B) labor. C) the price level. D) total factor productivity.