State and local governments receive money from sales taxes, property taxes, and the federal government
a. True
b. False
Indicate whether the statement is true or false
True
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If a 20 percent increase in the price of a used car results in a 10 percent decrease in the quantity of used cars demanded, then the price elasticity of demand equals
A) 0.5. B) 1.0. C) 2.0. D) 10.0.
Of the recessions and expansions from 1950 to 1990, the common events were
a. reactions to war and oil prices b. tax increases and tax cuts c. changes in exports d. Decreases in welfare spending e. Increases and decreases in health care spending
If the construction of a new elementary school would create $5 million worth of benefits for citizens and cost $7 million to construct, then using the criterion of economic efficiency, the school
a. should be built. b. should not be built. c. results in a substantial improvement to the welfare of society. d. should be built if it passes by a majority vote.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y2. C. P3 and Y1. D. P2 and Y3.