In the figure above, suppose that the government imposes a tax of $4 per pizza. Then, the
A) buyers and sellers equally share the incidence of the tax.
B) shaded area is the deadweight loss from the tax.
C) shaded area is the tax revenue from the tax.
D) Both answers A and B are correct.
E) Both answers A and C are correct.
D
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An American farmer today feeds over ______ people.
A. 15 B. 30 C. 50 D. 100
Alcohol prohibition in the United States
A) abolished the production of liquor. B) abolished the consumption of liquor. C) abolished the distribution of liquor. D) accomplished all of the above. E) accomplished none of the above.
If a country has a fixed exchange rate,
A) the equilibrium exchange rate in that market does not respond to changes in supply and demand for currency. B) the exchange rate is allowed to fluctuate in response to changes in the supply and demand for currency. C) central banks have more control over real GDP in the economy. D) central banks must buy and sell their holdings of currencies to maintain a given exchange rate.
When the Federal Reserve increases the money supply, people ________
A) decrease their purchases of bonds and other financial assets B) may, in the short run, increase their purchases of goods and services C) decrease the quantity of money holdings D) all of the above E) none of the above