A carbon tax placed on coal will ________ the price of coal and ________ the quantity sold of coal.
A. raise; decrease
B. raise; increase
C. lower; decrease
D. lower; increase
Answer: A
You might also like to view...
The firm can calculate all points on its total cost curve if it knows
a. its production function. b. the prices of inputs and of output. c. its average cost at its optimal output level. d. the prices of inputs and its production function.
Labor productivity growth in the United States during the 1973-1995 period could be explained by a ____ slowdown
a. labor force b. capital formation c. technological d. population growth
The major purpose of the Federal Reserve buying government securities in open market operations is to ________.
A. raise money for government spending B. reduce the excess reserves of banks C. allow banks to increase their lending D. increase interest rates
At a perfectly competitive equilibrium with production and trade, the slope of the production possibility curve will be
A) equal to the slope of the price line faced by the consumers. B) steeper than the slope of the price line faced by consumers. C) flatter than the slope of the price line faced by consumers. D) either steeper or flatter than the price line faced by the consumers, depending upon the relative preferences of the consumers.