If penalties are imposed on both the buyers and the sellers of illegal goods or services, then an effect in the market for the illegal good or service would definitely be
A) an increase in the equilibrium price.
B) a decrease in the equilibrium price.
C) a decrease in the equilibrium quantity.
D) an increase in the equilibrium quantity.
C
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Which of the following best explains why equilibrium income will rise by more than $100 in response to a $100 increase in government spending?
A) incomes will rise resulting in a tax decrease B) incomes will rise resulting in higher consumption C) The increased spending raises the aggregate price level D) The increased spending increases the money supply, lowering interest rates E) The higher budget deficit reduces investment
Which of the following is NOT considered to be a benefit of unionism?
A) increased featherbedding B) greater workplace safety C) higher workforce stability D) provision of arbitration and grievance procedures