The reason that the impact on prices of decriminalization is ambiguous is that decriminalization causes a price
A. decreasing supply curve movement and a price increasing demand curve movement.
B. decreasing supply curve movement and a price decreasing demand curve movement.
C. increasing supply curve movement and a price decreasing demand curve movement.
D. increasing supply curve movement and a price increasing demand curve movement.
Answer: B
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Fiscal policy
A) uses the tool of interest rates to stimulate private savings. B) uses the tools of taxation and spending in an effort to address inflation and unemployment. C) uses the tool of the exchange rate to discourage imports. D) uses the tool of business regulation to increase economic efficiency.
Above-normal returns on stock investments can be expected by investors who
A) possess insider information. B) are wealthy enough to hold the stock of many different companies in their portfolios. C) are risk seeking. D) concentrate their investments in one or two stocks.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
Tyler purchases 5 pounds of hot dogs per month when his monthly income is $2,000 and 4 pounds of hot dogs per month when his monthly income is $2,200 . Tyler's income elasticity of demand for hot dogs is
a. 2.33, and hot dogs are a normal good. b. -2.33, and hot dogs are an inferior good. c. 0.43, and hot dogs are a normal good. d. -0.43, and hot dogs are an inferior good.