The effects of a per-unit tax imposed on sales of an industry's product would likely include
A) a lower product price at any amount of the product supplied.
B) a leftward shift of the market supply curve for the product.
C) a leftward movement along the market supply curve for the product.
D) none of the above.
B
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The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Living with this risk gives Bob the same expected utility as if there was no chance of theft and his wealth was
A) $0. B) $20. C) $30. D) $50.
Between the Civil War and World War I, the U.S. monetary system:
a. experienced a persistent deflation. b. suffered several financial crises in which banks closed and firms went bankrupt. c. adopted a de facto gold standard. d. adopted a central bank. e. All of the above.
Which of the following is true of a natural experiment?
A. A natural experiment occurs when some endogenous event changes the environment in which individuals, families, firms, or cities operate. B. The control group in a natural experiment is randomly chosen. C. The treatment group in a natural experiment is randomly chosen. D. Control and treatment groups in a natural experiment arise due to an exogenous event.
Demand is said to be elastic when percentage changes in quantity demanded are
A. less than the percentage changes in price. B. higher than the percentage changes in price. C. equal to the percentage changes in price. D. zero when price changes.