An unintended effect of a new tax placed on the producers of good A may include
A. a higher price paid by the consumers of good A.
B. less consumers' surplus for the buyers of good A.
C. fewer workers employed in the production of good A.
D. all of the above
Answer: D
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Workers expect inflation to rise from 3% to 5% next year. As a result, this should
A) shift the short-run aggregate supply curve to the left. B) move the economy down along a stationary short-run aggregate supply curve. C) shift the short-run aggregate supply curve to the right. D) move the economy up along a stationary short-run aggregate supply curve.
Antitrust activities can cause inefficiencies by:
A. breaking up a natural monopoly. B. creating many small firms that cannot capture available economies of scale. C. Both of these statements are true. D. Neither of these statements is true.
Which category has the highest amount of state and local spending?
a. education b. police c. firefighting d. transportation
Which of the following best explains why a firm in a perfectly competitive market must take the price determined in the market?
A. The short-run average total costs of firms that are price takers will be constant. B. If a price taker increased its price, consumers would buy from other suppliers. C. Firms in a price-taker market will have to advertise to increase sales. D. There are no good substitutes for the product supplied by a firm that is a price taker.