Tampering with the price mechanism
A. can be efficient for a while.
B. cannot be attempted in a market economy.
C. can enhance societal welfare if done properly.
D. often produces undesired side effects.
Answer: D
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In Singapore the government places a $5,000 tax on the buyers of new automobiles. After the purchase of a new car, a buyer must pay the government $5,000. How would the imposition of the tax on buyers be illustrated in a graph?
A) The tax will shift the demand curve to the left by $5,000. B) The tax will shift the supply curve to the left by $5,000. C) The tax will shift both the demand and supply curves to the right by $5,000. D) The tax will shift the demand curve to the right by $5,000.
Everything else equal, the AC curve will shift when
A. the price of the product rises. B. technological change raises the MPP of one input. C. output rises. D. increasing returns to scale are present.
A firm can minimize cost by
A) picking the bundle of inputs where the lowest isocost line touches the isoquant. B) picking the bundle of inputs where the isoquant is tangent to the isocost line. C) picking the bundle of inputs where the last dollar spent on one input gives as much extra output as the last dollar spent on any other input. D) All of the above.
Between 1992 and 2012, the percentage of college students receiving some form of aid
A. increased from 58% to around 84%. B. increased from 8% to 13%. C. decreased from 73% to 58%. D. remained constant at 35%.