If the government imposed a green tax on gasoline, ceteris paribus, the price of gasoline should
A. Remain unchanged.
B. Decrease.
C. Increase.
D. Increase initially but later decrease.
Answer: C
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We observe a shortage in real life when we see
A) nonmoney costs of acquiring a good increasing. B) people unable to purchase as much as their situation requires. C) prices falling. D) the amount purchased is less than the amount supplied.
In the classical model, the factors determining output and employment are the factors that ascertain the position(s) of
a. the labor supply curve only. b. the labor demand curve only. c. the aggregate production function. d. both the labor supply curve and the labor demand curve. e. Both c and d
A mutual fund
a. is a financial institution that stands between savers and borrowers. b. is a financial intermediary. c. allows people with small amounts of money to diversify their holdings. d. All of the above are correct.
Refer to the above figure. Point C is known as
A. a peak. B. a trough. C. an expansion. D. a contraction.