The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S0 to S1 The quantity of ice cream consumed before the tax is ________ gallons and the quantity consumed after the tax is ________ gallons.
A) 300,000; 200,000
B) 200,000; 250,000
C) 250,000; 200,000
D) 200,000; 300,000
E) 200,000; 200,000
Ans: C) 250,000; 200,000
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Which of the following is true of tariffs?
A) Tariffs are special taxes levied on imports. B) Tariffs reduce the volume of exports. C) Tariffs decrease the prices of imports. D) Tariffs encourage international trade.
The IS curve shows the combinations of ________ and ________ where the goods market is in equilibrium
A) aggregate expenditure; real GDP B) the real interest rate; real GDP C) potential GDP; aggregate expenditure D) the nominal interest rate; the quantity of money
During the English civil war in the 1640s, the _____ made great inroads into the carrying trade
a. Italians b. Dutch c. Spanish d. French
If the price of one input changes, generally the firm will change its use of both inputs
a. True b. False Indicate whether the statement is true or false