If the government passes a law requiring sellers of mopeds to send $200 to the government for every moped they sell, then
a. the supply curve for mopeds shifts downward by $200.
b. sellers of mopeds receive $200 less per moped than they were receiving before the tax.
c. buyers of mopeds are unaffected by the tax.
d. None of the above is correct.
d
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Draw a graph to illustrate the effect of higher gasoline prices on the demand for large SUVs. What is the relationship between gasoline and SUVs?
What will be an ideal response?
Suppose that prices are sticky in the short-run. Which of the following best describes the economy's response to a positive demand shock?
A. Firms' inventories will increase, causing them to cut production. Ultimately, real GDP will decrease and unemployment will increase. B. Firms' inventories will decrease, causing them to increase production. Ultimately, real GDP will increase and unemployment will decrease. C. Firms' inventories will increase, causing them to cut production. Ultimately, real GDP will increase and unemployment will increase. D. Firms' inventories will increase, causing them to cut production. Ultimately, real GDP will decrease and unemployment will decrease.
The most people live in ________ economies and the fewest people live in ________ economies
A) emerging market; developing B) advanced; emerging market C) developing; emerging market D) advanced; developing E) developing; advanced
Less money means ________ interest rates, which ________ spending
A) lower; stimulates B) lower; reduces C) higher; stimulates D) higher; reduces