In graphical form,the effect of imposing a tax on a good is shown as
A) a leftward shift of the market supply curve.
B) a rightward shift of the market supply curve.
C) a downward movement along the market supply curve.
D) no change to the market supply curve.
Answer: A
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The condition required for equilibrium to exist according to Keynesian analysis is that
a. foreign trade must be in balance. b. taxes must be equal to government spending. c. total planned injections must be equal to total planned leakages. d. employment must be full.
Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then
a. the profits of her firm might increase. b. she will face a shortage of labor. c. the turnover of her workers may increase. d. None of the above is correct.
The economizing problem for individuals is a consequence of the fact that:
A. Economic means or incomes are greater than economic wants B. Economic wants are greater than economic means or incomes C. Positive economics is more important than normative economics D. Normative economics is more important than positive economics
In a competitive market, the demand curve shows the ________ received by consumers and the supply curve shows the ________
A) utility; average cost. B) marginal benefit; marginal cost C) economic surplus; opportunity cost D) net benefit; net cost