In order to increase the capital stock, society must divert ________ that could be otherwise used to increase the current supply of ________.
A. credit; labor
B. money; consumer goods
C. resources; consumer goods
D. money; labor
Answer: C
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The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S0 to S1. The tax incidence is
A) split equally between consumers and producers, each paying $1 per gallon. B) split equally between consumers and producers, each paying $2 per gallon. C) such that consumers pay $2 per gallon and producers pay $1 per gallon. D) such that consumers pay $1 per gallon and producers pay $2 per gallon. E) such that producers pay all of the tax.
According to the total revenue test, a price cut increases total revenue if demand is
A) inelastic. B) perfectly inelastic. C) elastic. D) unit elastic.
What was the GATT?
What will be an ideal response?
Which of the following statements is correct?
a. The demand curve typically slopes upward; the supply curve typically slopes downward. b. The demand curve typically slopes downward; the supply curve typically slopes upward. c. Both the demand and supply curves typically slope downward. d. Both the demand and supply curve typically slope upward. e. The demand curve is typically vertical; the supply curve is typically horizontal.