Recall the Application. The change in demand for cigarettes resulting from the decrease in taxes would normally create, ceteris paribus
A) a decrease in their quantity supplied. B) a decrease in their supply.
C) an increase in their supply. D) an increase in their quantity supplied.
D
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What will be an ideal response?
Refer to the accompanying figure. Assume demand remains unchanged at D1. If supply shifts from S2 to S1, then the equilibrium price will ________ and the equilibrium quantity will ________.
A. rise; rise B. fall; fall C. fall; rise D. rise; fall
If the APC is .7, we save
A. 3 percent of our income. B. 7 percent of our income. C. 30 percent of our income. D. 70 percent of our income.
If the World Bank makes loans to nations that can attract private funds
A. the presence of the World Bank's loans will lead to even more private funds being attracted to that country. B. the World Bank's loans will lead to even more private loans made to developing nations. C. the increase in growth in that nation will spill over to other nations that are developing. D. these loans will interfere in the private market for capital goods and can lead to inefficient investment.