The Economic Way of Thinking Suggests That If the Government

question 86

Multiple Choice

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.