Which of the following is true about an excise tariff?
A. Foreign firms' average cost curves are shifted down by the amount of the excise tariff.
B. Domestic firms' average cost curves are shifted up by the amount of the excise tariff.
C. Foreign firms' marginal cost curves are shifted up by the amount of the excise tariff.
D. Domestic firms' marginal cost curves are shifted up by the amount of the excise tariff.
Answer: C
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All of the following are part of an economic model except
A) data. B) opinions. C) assumptions. D) hypotheses.
If the economy were left on its own without the interference of government or the Fed, it would move toward an equilibrium rate of growth that would produce, with only minor interruptions, full employment without inflation. What school supports this view?
a. classical b. Keynesian c. monetarism d. supply-side e. neo-Keynesian