"The Florida freeze has destroyed 40% of the orange cro
A) Yes. The freeze would not reduce the supply.
B) Yes. The higher price would not reduce the demand.
C) Yes. It assumes the demand curve for oranges is vertical.
D) Yes. It assumes the demand curve for oranges is upward-sloping.
B
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A change in consumers' incomes causes a change in:
A. the demand for normal goods but not the demand for inferior goods. B. supply. C. demand. D. the cross-price elasticity of demand.
Suppose a particular production process results in a large amount of pollution and the government decides to impose a tax to correct for this externality, such that the socially optimal output will be produced. The tax will have the effect of shifting the
A. marginal private benefit curve to the right. B. marginal social benefit curve to the right. C. marginal private cost curve to the left. D. marginal social cost curve to the left. E. marginal private cost curve to the right.
In the United States, the long-run inflation target is ________
A) undisclosed B) currently set at 7% C) currently set at 2% D) currently set at minus 1%
If the marginal propensity to consume is 0.75, then the value of the tax multiplier is
A) -2.5.
B) -3.
C) 1.25.
D) 1.4.