Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. To force this firm to produce the efficient level of output, the government should impose a tax of
A. $5.00 per car.
B. $10.00 per car.
C. $15.00 per car.
D. an amount that is indeterminate from this information.
Answer: B
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Which of the following is true?
i. When the world price of a good is lower than the price that balances domestic supply and demand, a country gains from exporting the good. ii. Compared to a no-trade situation, in a market with imports, consumer surplus is larger. iii. Quotas raise the domestic price of imported goods. A) only i B) only ii C) only iii D) i and ii E) ii and iii
Which of the following will cause the LM curve to shift to the left?
A) A decrease in investment B) A decrease in money demand C) An increase in velocity D) A decrease in the money supply
The fire department receives its revenues from the government budget, not on a per-fire-extinguished basis. As a result, it is difficult for department officials to know if
a. the fire department is even needed b. too much or too little fire protection is being supplied c. fires should be extinguished d. they should raise or lower price e. keep the difference between revenues and costs
Examples of agency addressing social regulation include
A) OSHA B) EPA C) FDA D) all of these choices