Governments May Use Microeconomic Models to Study the Effects of a New

question 55

Multiple Choice

Governments may use microeconomic models to study the effects of a new tax on

• A) the prices consumers pay.
• B) the money supply.
• C) the prices charged by producers.
• D) A and C

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Definitions:

Physiological

Relating to the branch of biology that deals with the normal functions of living organisms and their parts.

Personal

Relating to or affecting an individual directly; not related to or representative of anything larger or external to oneself.

Psychological

Pertaining to the mind and mental processes, influencing or influenced by emotional and cognitive factors.

Maslow Hierarchy

A psychological theory proposed by Abraham Maslow, categorizing human needs into five levels ranging from basic (such as physiological needs) to higher needs (like self-actualization).