A horizontal line showing the current rate of inflation, as determined by past expectations and pricing decisions is called the:
A. short-run aggregate supply line.
B. short-run equilibrium output line.
C. aggregate demand curve.
D. long-run aggregate supply line.
Answer: A
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An effluent fee is an example of
A) a government policy to correct for an external benefit. B) a government policy to promote the production of a product with an external cost. C) a government policy to promote the production of a product with an external benefit. D) a government policy to correct for an external cost.
If the tax on a good is increased from $0.30 per unit to $0.90 per unit, the deadweight loss from the tax
a. remains constant. b. increases by a factor of 4. c. increases by a factor of 9. d. increases by a factor of 16.
Since 1990 the highest economic growth rates in the world have occurred in
A. India. B. Nigeria. C. China. D. The United States.
Assume a market initially exhibits a shortage. Assuming that both prices and quantities are flexible, which of the following will be true after the market adjusts to equilibrium?
A) Price is lower. B) Quantity demanded is greater. C) Quantity supplied is more. D) Quantity supplied will be reduced.