The condition of fully flexible wages and prices was assumed by
A) no economists. B) the classical economists.
C) modern economists. D) the Keynesian economists.
B
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The figure above illustrates the gasoline market. There is no external benefit from gasoline. If a pollution tax equal to the marginal external cost is imposed on gasoline, then the quantity of gasoline produced and consumed equals
A) 0 gallons. B) 5 million gallons. C) 10 million gallons. D) 20 million gallons. E) None of the above answers is correct.
A rise in the oil price will
A) shift the supply curve of gas to the left. B) shift the supply curve of gas to the right. C) leave the supply curve of gas unchanged. D) Not enough information is provided.
What is likely to happen if many new businesses enter a market?
Industry profits will increase Industry capacity will fall Competitive rivalry will intensify Barriers to entry will rise
The bulk of the decline in the natural rate of unemployment from 1980 to 2000 is because of
A. increased competition from foreign workers. B. the depreciation of the dollar relative to foreign currencies. C. a decline in the inflation rate. D. a decline in the share of young workers in the labor force.