If all fixed taxes in the United States were removed and only variable taxes remained, what would be the effect on the expenditures schedule?
a. The expenditure schedule will shift upward.
b. The expenditure schedule will shift downward.
c. The expenditure schedule will become flatter.
d. The expenditure schedule will become steeper.
a
You might also like to view...
Mutual funds give individual investors a low-cost way to diversify
Indicate whether the statement is true or false
Raiman's Shoe Repair produces custom-made shoes. When Mr. Raiman produces 12 pairs per week, the marginal cost of the 12th pair is $84, and the marginal revenue of the 12th pair is $70 . What would you advise Mr. Raiman to do?
a. shut down the business b. produce more custom-made shoes c. decrease the price d. produce fewer custom-made shoes
Which of the following is true of a voluntary export restraint (VER)?
A. A voluntary export restraint usually requires that the foreign exporting firms act like a cartel, restricting sales and raising prices. B. A voluntary export restraint ensures that foreign exporting firms are unable to exercise monopoly power. C. Voluntary export restraints have mostly been used by developing countries to protect their domestic industries. D. A voluntary export restraint generates more revenue for the government of the importing country than would a tariff or quota.
Use the figure below to answer the following question.
The area that identifies the maximum sum of consumer surplus and producer surplus is
A. a + b + e. B. a + b + c + d. C. a + b + c + d + e + f. D. c + d + f.