Suppose cars are taxed according to the amount of pollution they emit per gallon of gasoline consumed. We would expect to observe all of the following EXCEPT
A. an increase in quantity demanded of less-polluting automobiles and a reduction in quantity demanded of more-polluting automobiles.
B. an increase in quantity demanded of more fuel-efficient cars.
C. an increase in the miles driven.
D. an increase in production of automobiles that were less polluting.
Answer: C
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If the quantity of money increases, the
A) price level rises and the AD curve does not shift. B) AD curve shifts leftward and aggregate demand decreases. C) AD curve does not shift and there is a movement upward along the curve. D) AD curve shifts rightward and aggregate demand increases.
Price discrimination results in _____________ than would be observed under a single-price monopoly
a. higher output and lower costs b. lower output and higher costs c. higher output and higher costs d. lower output and lower costs
Consumption expenditures consists of
A) Purchases of food. B) Purchases of automobiles. C) Purchases of airline tickets. D) All of the above.
Excluding corner solutions, in consumer equilibrium, which of the following is true?
A. The consumer is minimizing utility given the constraints. B. The indifference curve is steeper than the budget constraint. C. The consumer can improve his/her situation by consuming more of both goods. D. The marginal rate of substitution equals the slope of the budget constraint.