Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for iPods. You predict that the major effect will be that the
A) demand curve for an iPod will shift rightward.
B) demand curve for an iPod will shift leftward.
C) supply curve for an iPod will shift leftward.
D) supply curve for an iPod will shift rightward.
C
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Which of the following statements does not help to explain why government drug interdiction increases drug-related crime?
a. The demand for illegal drugs is inelastic. b. Interdiction results in drug addicts having a greater need for quick cash. c. Interdiction results in an increase in the amount of money needed to buy the same amount of drugs. d. Government drug programs are more lenient now with drug offenders than they were in the 1980s.
To make a tax system more progressive, policy makers could
A. Raise marginal tax rates for higher incomes. B. Narrow the tax base. C. Raise sales taxes on commonly purchased items. D. Allow all interest expenses to be deductible, not just interest on mortgages.