The economic way of thinking suggests that if the government imposed a $500 tax on owners of red automobiles,
a. fewer red automobiles would be produced and sold.
b. more red automobiles would be produced and sold.
c. there would be no change in the number of red automobiles produced and sold.
d. red automobiles would cease to exist.
A
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Even though it may seem that nations have a wide variety of policy options to stabilize their economies, there are a number of issues to be considered and overcome. Which of the following is NOT an issue confronting policy makers?
A) the desire to maintain fixed exchange rates or membership in a pegged currency bloc B) long and uncertain time lags when policy effects will occur C) the pass-through issue, when little effect occurs on the real effective exchange rate D) international controls that limit the ability of any nation to determine its exchange rate policy
Refer to the table above. Which country is likely to have the highest percentage of children between 7 and 14 who are working?
A) Country A B) Country B C) Country C D) Country D