If Argentina imposes a 20 percent tax on natural gas exports to be paid by suppliers. Other things equal, this causes the:
A. supply of natural gas exports to shift to the left.
B. supply of natural gas exports to shift to the right.
C. quantity of natural gas exports produced to increase.
D. demand for natural gas exports to shift to the right.
Answer: A
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Under a system of flexible exchange rates, an increase in demand for a nation's currency in the foreign exchange market will: a. cause the nation's currency to appreciate
b. make it more expensive for the nation to import goods. c. cause the nation's balance on current account to shift toward a deficit. d. make it less expensive for foreigners to buy the nation's goods.
Which of the following is a TRUE statement about the economic assumption of rationality?
A. Individuals who are rational necessarily ignore the interests of others. B. People make decisions as if they are most selfish in the world. C. Individual behavior may be irrational but group behavior is always rational. D. Individuals generally act as though they are rational.
Monthly payments on "negative-amortization" mortgages typically increase over the life of the mortgage.
Answer the following statement true (T) or false (F)