A tax on buyers will ________ the price paid by the consumer and ________ the price received by the seller.
A. increase, decrease
B. increase, increase
C. decrease, decrease
D. decrease, increase
Answer: A
You might also like to view...
During a recession, unemployment rises and total output of the economy rises.
Answer the following statement true (T) or false (F)
In January, buyers of gold expect that the price of gold will fall in February. What happens in the gold market in January, holding everything else constant?
A) The demand curve shifts to the right. B) The quantity demanded decreases. C) The demand curve shifts to the left. D) The quantity demanded increases.
The relationship between quantity supplied and the price of output is such that
A) an increase in quantity will automatically lead to a reduction in price. B) an increase in price will lead to an increase in quantity supplied. C) an increase in price will produce an inward shift in the supply curve. D) quantity will decrease as the number of firms increases.
To make a correct decision about limiting imports on behalf of an infant industry, the government should look at:
a. political pressure from key constituents. b. a cost-benefit analysis measuring the present value of the likely benefits from lower production costs compared with the cost to society of higher prices in the present. c. the value of retaining U.S. jobs versus the small cost of higher priced units. d. the difficulty of keeping out imports from established trading partners and weighing the number of workers employed in the industry that could not easily get other jobs.