If a Pigovian tax is levied on consumers, the demand curve will shift:
A. straight down, decreasing quantity.
B. straight up, decreasing quantity.
C. straight up, increasing quantity.
D. straight down, increasing quantity.
Answer: A
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Bob's utility function is shown in the above figure. He currently has $100 worth of property, but there is a 50% chance that all of it will be stolen. An insurance company offers to reimburse Bob for his loss if the money is stolen
What is the most that Bob would pay for such a policy? Explain.
At a price of $5, 24 units of the good would be sold; at a price of $7, 25 units of output would be sold. The marginal revenue of the 25th unit of output is:
a. $14. b. $55. c. $6. d. $168. e. $175.
If the marginal propensity to consume is 0.5 and disposable income decreases by $10,000 . by how much will consumption spending decrease?
a. $10,000 b. $500 c. $50 d. $5,000 e. $9,524
Economic data:
A. are sometimes revised months or years after their initial release. B. are never fully reliable, even after years of revisions. C. tend to be completely reliable and accurate when first reported. D. are meaningless if not interpreted by a policymaker with good instincts.