Should the government wish to lower the price of gasoline to the consumer, one approach might be
A) to raise the gasoline excise tax.
B) to reduce the gasoline excise tax.
C) to take action to shift the supply curve of gasoline to the left.
D) to lower taxes on automobiles.
B
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If the Fed has announced that it plans on increasing the interest rate it will
A) engage in contractionary open market operations, thereby decreasing the money supply. B) engage in expansionary open market operations, thereby decreasing the money supply. C) engage in expansionary open market operations, thereby increasing the money supply. D) engage in contractionary open market operations, thereby increasing the money supply.
When a rent-seeking equilibrium is reached, the
A) economic profit is maximized. B) economic profit is eliminated by legislation. C) economic profit is eliminated. D) consumer surplus is greater than without rent seeking. E) consumer surplus is eliminated.
In a market system, ________ provide signals about whether resources are relatively scarce or abundant
A) prices B) economists C) government officials D) scientists and engineers
The marginal rate of substitution ____ as one moves downward along the indifference curve
a. increase b. remains constant c. decreases d. increases and then decreases