If the government levies a $0.25 tax per MP3 music file downloaded on buyers of MP3 music files, then the price received by sellers of MP3 music files would
a. decrease by more than $0.25.
b. decrease by exactly $0.25.
c. decrease by less than $0.25.
d. increase by an indeterminate amount.
c
You might also like to view...
The Federal Reserve System's four monetary policy goals are
A) low government budget deficits, low current account deficits, high employment, and a high foreign exchange value of the dollar. B) price stability, low government budget deficits, low current account deficits, and a low rate of bank failures. C) price stability, high employment, economic growth, and stability of financial markets and institutions. D) a low rate of bank failures, high reserve ratios, price stability, and economic growth.
In the Classical model, an increase in aggregate demand leads to __________ real GDP and __________ price level
A) an unchanged; an unchanged B) a rising; an unchanged C) a rising; a rising D) an unchanged; a rising
Which of the following is necessary to make a trade in a barter economy?
A. Money B. Unlimited wants C. A medium of exchange D. A coincidence of wants
The inflation rate in a particular country changed from 4 percent to 8 percent during two subsequent quarters of the same year. As a result, retail outlets had to reprint new sticker prices for their products. This additional cost borne by the retailers because of the inflation is an example of a: a. menu cost
b. shoe-leather cost. c. unit-of-account cost. d. time cost.