How would a new excise tax affect the supply curve?
(A) It would probably cause the supply curve to shift to the left.
(B) It would probably cause the supply curve to shift to the right.
(C) The effect cannot be determined without knowing the amount of the tax.
(D) It would not change the supply curve, because it would only move price.
Ans: (A) It would probably cause the supply curve to shift to the left.
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Economies of scale occur when the percentage increase in output
A) exceeds the percentage increase in all inputs. B) is less than the percentage increase in all inputs. C) exceeds the percentage decrease in all inputs. D) is less than the percentage decrease in all inputs.
The global financial crisis of 2007-2009 not only led to a worldwide recession, but also a ________ in the European nations that use the euro currency
A) currency devaluation B) budget surplus C) sovereign debt crisis D) tax cut