Government action can cause a significant market demand shift.
Answer the following statement true (T) or false (F)
True
Government action can cause significant market shifts. If the government required the use of hands-free headsets while driving a car, the sale of those headsets would increase, shifting demand to the right.
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Suppose that the share of population employed in Country C is 50 percent, and that Countries C and D have the same real GDP per capita. Based on the information in the table, what share of Country D's population must be employed? CountryPopulation (millions)Average Labor Productivity ($)A1002,000B15010,000C7525,000D25050,000E9560,000
A. 100.0 percent B. 75.0 percent C. 12.5 percent D. 25.0 percent
Holding other factors constant, if Congress passes a 5% investment tax credit under which a firm receives $5 in tax refunds from the government for every $100 it spends on new capital equipment, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. increase; decrease B. increase; increase C. decrease; increase D. increase; not change
Sitting through a terrible movie till the end because you already bought the ticket is an example of:
A. sunk cost fallacy B. making a decision at the margin. C. rational behavior. D. negative utility endorsement.
Which of the following options could be used to eliminate a recessionary gap?
a. Decrease consumption b. Increase investment c. Decrease investment d. Increase taxes