How would the market for coffee be affected if the government charged an excise tax of $1.00 on each unit of coffee sold?
A) There would be a shortage of coffee.
B) The demand for coffee would increase.
C) The demand for coffee would decrease.
D) The supply curve would shift up vertically by $1.00.
Answer: D
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Adam Smith was an American economist that published The Wealth of Nations, one of the most important books in the history of economic thought
Indicate whether the statement is true or false
If the demand for a monopoly's output shifts rightward, the change in quantity produced is
A) positive. B) negative. C) zero. D) not predictable.
Which of the following is not a reason the New York Federal Reserve Bank president always gets to vote at the Federal Open Market Committee meetings?
a. New York is the traditional financial center of the U.S. economy. b. All Fed purchases and sales of bonds go through the New York Fed's trading desk. c. New York has higher population than other cities in the U.S. d. All of the above are reasons.
A demand-pull inflation problem can best be solved by
A. An increase in aggregate demand. B. A reduction in aggregate supply. C. A reduction in desired spending. D. An increase in production of goods and services.