Refer to the graph below, which shows the effect of ________ on the home economy
A) foreign inflation
B) domestic inflation
C) foreign deflation
D) domestic recession
E) foreign recession
A
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What is the antithesis of the rule of law?
A) Arbitrary governance B) Governance according to the will of whoever is in charge C) Both of the above. D) None of the above.
There is a difference between who is legally required to send a tax payment to the government and who bears the burden of the tax. Which of the following would have the most impact on who bears the burden of an excise tax?
A) The elasticity of demand for the item that is taxed. B) whether the tax is based on the ability-to-pay principle or the benefits-received principle C) whether the tax is imposed by the federal government or a state government D) The motive for the tax. If the tax is designed to raise revenue, more of the burden will fall on firms. If the tax is designed to achieve a social objective (for example, to discourage smoking) more of the burden will fall on consumers.
A local store noticed that when it increased the price of milk from $2.50 to $3.50 per gallon, it sold the same amount of milk per week (165 gallons). Since everything else remained the same, we would say the
a. demand for milk is perfectly elastic b. demand for milk is elastic c. demand for milk is perfectly inelastic d. demand for milk is unitary elastic e. law of supply does not apply in this situation
Which of the following is a risk that investors undertake when purchasing stocks?
a. An individual stock can rise and fall unpredictably. b. Nearly all stocks in the stock market may rise or fall together, when expectations about the entire economy change. c. Both a and b are true. d. Neither a nor b is true.