A contractionary fiscal policy is likely to
A) increase government borrowing, thereby shifting the supply curve for bonds to the right.
B) reduce government borrowing, thereby shifting the supply curve for bonds to the left.
C) increase government borrowing, thereby shifting the demand curve for bonds to the right.
D) reduce government borrowing, thereby shifting the demand curve for bonds to the left.
Ans: B) reduce government borrowing, thereby shifting the supply curve for bonds to the left.
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The indifference curves in the figure above (I1, I2, and I3 ) reflect Peter's consumption preferences
If Peter consumes 24 slices of pizza and 24 chocolate bars per month, he as satisfied as he would be consuming ________ slices of pizza and ________ chocolate bars per month. A) 48; 12 B) 40; 20 C) 32; 8 D) 16; 16
Refer to Figure 4-12. The figure above represents demand and supply in the market for cigarettes. Use the diagram to answer the following questions
a. How much is the government tax on each pack of cigarettes? b. What portion of the unit tax is paid by consumers? c. What portion of the unit tax is paid by producers? d. What is the quantity sold after the imposition of the tax? e. What is the after-tax revenue per pack received by producers? f. What is the total tax revenue collected by the government? g. What is the value of the excess burden of the tax? h. Is this cigarette tax efficient?