An adverse supply shock would
A) shift the production function up and decrease marginal products at every level of employment.
B) shift the production function down and decrease marginal products at every level of employment.
C) shift the production function down and increase marginal products at every level of employment.
D) shift the production function up and increase marginal products at every level of employment.
B
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Efficiency occurs in a market when
A) the sum of consumer surplus and producer surplus is maximized. B) consumer surplus is equal to producer surplus. C) consumer surplus is less than producer surplus. D) consumer surplus is greater than producer surplus. E) total revenue is maximized.
If a tax is imposed on a good,________
A) consumer surplus increases B) producer surplus increases C) the quantity of the good traded in the market increases D) the equilibrium quantity of the good in the market falls