The income effect of a decrease in the price of potatoes (an inferior good) is a(n)
a. decrease in the demand for potatoes
b. decrease in the quantity demanded of potatoes
c. increase in the demand for potatoes
d. increase in the quantity demanded of potatoes
e. new demand curve because everything else is no longer constant
B
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The form of property ownership rights inherited from the colonial period was characterized by which of the following?
(a) Property ownership was almost ideal as the base for a free-market economy. (b) Property ownership established property, including land, as a "commodity" that could be easily bought and sold. (c) Property ownership proved to be an excellent vehicle for economic growth. (d) All of the above.
The United States has a dual banking system consisting of state banks and national banks
a. True b. False Indicate whether the statement is true or false
Rightward AS shifts will cause
A. Leftward Phillips curve shifts. B. Rightward Phillips curve shifts. C. Movements down and to the right along the existing Phillips curve. D. Movements up and to the left along the existing Phillips curve.
Refer to the Laffer Curve above. A cut in the tax rate from T5 to T4 would:
A. Decrease tax revenues and support the views of supply-side economists
B. Increase tax revenues and support the views of supply-side economists
C. Increase tax revenues and support the views of mainstream economists
D. Decrease tax revenues and support the views of mainstream economists