As illustrated in the textbook, the government can further increase the support price of a commodity by purchasing excess supplies and using a:
A) production quota.
B) consumption tax.
C) excess profits tax.
D) minimum wage.
A
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A public good is
A. always depletable and excludable. B. always depletable and often excludable. C. never depletable and always excludable. D. never depletable and always nonexcludable.
Refer to the above diagram. Total utility:
A) increases so long as additional units of Y are purchased. B) becomes negative at 4 units. C) increases at a diminishing rate, reaches a maximum, and then declines. D) is maximized at 2 units.
Nominal GDP divided by the money stock equals:
A. the value of transactions. B. the price level. C. velocity. D. real GDP.
Tastes are starting to change for hybrid vehicles such that consumers are purchasing more hybrid vehicles and suppliers are choosing to produce more hybrid vehicles than they were five years ago. Due to the change in tastes, equilibrium price has fallen and equilibrium quantity has increased relative to the hybrid market from five years ago. What is the likely cause of this result?
A) Supply increased by more than demand. B) Demand increased by more than supply. C) Demand and supply increased by the same amount. D) Only supply increased.