If a $2 tax per bottle of wine is imposed on wine producers, which of the following will occur?
a. The price of wine will increase, fewer bottles will be purchased, and there will be a deadweight loss from this tax.
b. The price of wine will increase, more bottles will be purchased, and consumers will gain as the result of this tax.
c. The price of wine will decrease, more bottles will be purchased, and there will be a deadweight loss from this tax.
d. The price of wine and quantity sold will be unchanged.
A
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The above table shows production points on Sweet-Tooth Land's production possibilities frontier. Which of the following statements is TRUE?
A) Producing 0 chocolate bars and 100 cans of cola is both attainable and efficient. B) Producing 20 chocolate bars and 80 cans of cola is attainable, but inefficient. C) Producing 30 chocolate bars and 38 cans of cola is only attainable with an increase in technology. D) Producing 40 chocolate bars and 0 cans of cola is unattainable and inefficient.
Endogenous growth theory supports the conclusion that ________
A) government spending cannot influence the level of research and development B) increased government spending on research and development is counterproductive C) per capita income growth is a function of real factors, such as the supply of money D) increased government spending on research and development is useful
The principal-agent problem occurs:
A. when the principal has less information than the agent. B. when the principal has more information than the agent. C. when the agent has less information than the principal. D. not observed in reality.
An increase in the demand for peanut butter, a normal good, can be caused by a(n):
a. decrease in consumer income. b. increase in the price of jams, jellies, and preserves. c. decrease in the price of bread. d. drought in Georgia that destroyed 30 percent of the peanut crop. e. decrease in the price of bologna.