On the diagram to the right a movement from A to B (downward movement on the demand curve) represents a
A. decrease in demand
B. change in demand
C. change in quantity demanded
D. movement up the demand curve
Ans: C. change in quantity demanded
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All of the following will cause a shift in the supply of smartphones EXCEPT
A) a decrease in the prices of smartphones. B) an increase in the cost of producing smartphones. C) a per-unit government subsidy on the production of smartphones. D) a decrease in the number of smartphone manufacturers.
When expected dollar-euro exchange rates rise, the foreign expected dollar return curve shifts:
a. in. b. out. c. not at all. d. Not enough information is provided to answer the question.
The Environment Ministry in Japan proposed a new carbon tax to meet Japan's obligations to reduce carbon dioxide emissions under the Kyoto Treaty. The tax would be levied on producers and importers of fossil fuels and raise the cost of using fossil fuels. How do most economists view a tax such as this?
A. They do not believe any government intervention is necessary because the invisible hand of the market will correct the problem. B. They prefer voluntary programs to taxes because they reduce the role of compulsion. C. They prefer direct regulation to taxes because taxes create deadweight loss. D. They support taxes on pollution as a way of prompting decision makers to consider all costs.
The poverty line goes up as the size of the household increases. A doubling of the family size
A. exactly doubles the poverty line. B. less than doubles the poverty line. C. more than doubles the poverty line.