The aggregate supply curve
a. indicates the markup at which firms are willing to supply a given level of output
b. is derived from equilibrium conditions in the money market
c. has a positive slope because an increase in real GDP causes an increase in the cost of resources
d. is found by summing up the supply curves of all the firms in an economy
e. illustrates how a change in the price level affects total output
C
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An example of the command-and-control approach to environmental policy is:
a. allowing individuals to sue freon producers if CFC emissions exceed a government-set standard. b. allowing coal producers to buy and sell permits to allow CFC emissions. c. placing a tax on freon to reduce its use and the corresponding CFC emissions (which contribute to the ozone hole). d. none of these.
Which of the following statements is correct concerning the burden of a tax imposed on take-out food?
a. Buyers bear the entire burden of the tax. b. Sellers bear the entire burden of the tax. c. Buyers and sellers share the burden of the tax. d. We have to know whether it is the buyers or the sellers that are required to pay the tax to the government in order to make this determination.