If a Pigovian tax is levied on producers, the supply curve will shift:
A. straight down, increasing quantity.
B. straight up, decreasing quantity.
C. straight down, decreasing quantity.
D. straight up, increasing quantity.
Answer: B
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The phrase "demand has decreased" means that
A) there has been an upward movement along a demand curve. B) a demand curve has shifted to the right. C) a demand curve has shifted to the left. D) there has been a downward movement along a demand curve.
If a higher inflation is expected, what would you expect to happen to the shape of the yield curve? Why?
What will be an ideal response?
Another way to state the efficient markets hypothesis is: in an efficient market
A) unexploited profit opportunities will be quickly eliminated. B) unexploited profit opportunities will never exist. C) all prices can be accurately predicted. D) every financial market participant must be well informed about securities.
In macroeconomics, equilibrium is defined as the point at which:
a. the economy attains the highest level of GDP. b. there is no unemployment in the economy. c. people's plans match the reality. d. there is high inflation and unemployment in the economy. e. there is no inflation in the economy.