Any event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity.
Answer the following statement true (T) or false (F)
True
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Marginal cost is the change in the:
A) total cost associated with producing one more unit of output. B) average total cost associated with producing one more unit of output C) average variable cost associated with producing one more unit of output. D) opportunity cost associated with producing one more unit of output.
If a new government adopted some ill-advised regulations causing the economy to be less efficient ________
A) the ensuing negative supply shock would lead to an immediate rise in inflation B) in the short-run this would create a negative output gap but eventually the previous general equilibrium would be restored by subsequent rightward shifts of the AS curve C) there would be no permanent changes in output and inflation D) all of the above E) none of the above
In Figure 32.1, at the market price-quantity combination, the consumer surplus is 
A. HPfloorBG. B. APfloorB. C. P*AC. D. HP*C.
The U.S. individual income tax is designed to be
A. progressive. B. proportional. C. an ability-to-pay tax. D. regressive.