Suppose the government imposes a 20-cent tax on the sellers of iced tea. Which of the following is not correct? The tax would
A. discourage market activity.
B. reduce the equilibrium quantity.
C. raise the equilibrium price by 20 cents.
D. shift the supply curve upward by 20 cents.
C. raise the equilibrium price by 20 cents.
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From a management policy perspective, which regression result is the most useful?
A) a regression equation that passes the F-test B) a regression equation whose explanatory variables all pass the t-test C) a regression equation that has the highest R2 D) a regression equation that has the least number of dummy variables
When the United States trades with China,
a. both countries will likely benefit. b. only United States will benefit. c. only China will benefit. d. neither country will benefit.
In Country X, the government requires employers to collect 9 percent of every employee’s compensation as payroll tax. This is an example of
A. progressive tax. B. regressive tax. C. digressive tax. D. proportional tax.
A tax multiplier equal to ?4.30 would imply that a $100 tax increase would lead to a:
A. $430 decline in real GDP. B. $430 increase in real GDP. C. 4.3 percent increase in real GDP. D. 4.3 percent decrease in real GDP.