The tax on gasoline in England is close to $3.20 per gallon, whereas the federal excise tax on gasoline in the United States is 18.4 cents per gallon. Suppose the U. S. government raised the federal excise tax to the English gas tax rate of $3.20
Explain the likely impact of that higher tax rate on conservation, oil exploration, and the development of substitutes for gasoline.
The increase in the federal excise tax on gasoline would increase the price of gasoline, which would decrease consumption and encourage conservation. The higher gas price would make it more profitable for oil companies to expand exploration, and it would encourage the development of substitutes for gasoline.
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Matt pays a $50 a month membership fee at Bruno's Gym. He can exercise at the gym as many times as he wishes
If the membership fee is measured along the vertical axis and the number of times he exercises is measured along the horizontal axis, the graph between his membership fee and the number of times he exercises will A) be a horizontal line. B) be positively sloped. C) be negatively sloped. D) be a vertical line. E) start out positively sloped and then, as Matt loses interest, become negatively sloped.
Refer to Figure 24-2. Ceteris paribus, a decrease in the labor force would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.