Assume Congress passes a new tax of $2.00 per pack on cigarettes. The effect on the supply curve is a(n):
a. decrease in supply. b. increase in supply.
c. decrease in quantity supplied. d. increase in quantity supplied.
a
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Suppose that because of inflation, the absolute price of a gallon of milk increases by 20% and the absolute price of a gallon of gasoline increases by 10%. In this situation, the price of milk relative to the price of gasoline
a. falls. b. rises. c. remains the same. d. changes unpredictably.
Monopolistically competitive firms have downward-sloping demand curves. In the long run, monopolistically competitive firms earn zero economic profits. These two characteristics imply that in the long run
A) monopolistically competitive markets achieve productive efficiency. B) monopolistically competitive firms have excess capacity. C) monopolistically competitive firms earn economic profits. D) monopolistically competitive markets achieve allocative efficiency.
Expansionary fiscal policy definitely raises the exchange rate.
Answer the following statement true (T) or false (F)
The branch of economics that deals with the gross domestic product (GDP), interest rates, and the unemployment rate is ________ economics
Fill in the blank(s) with correct word