Keynes believed that changes in autonomous spending were dominated by changes in
A) consumer expenditure.
B) autonomous consumer expenditure.
C) investment spending.
D) taxes.
E) none of the above.
C
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Neither the demand for gasoline nor the supply of gasoline is perfectly elastic or inelastic. If the federal government eliminated the 18.4 cents per gallon gasoline tax, the price paid by buyers would
A) decrease by less than 18.4 cents. B) decrease by 18.4 cents. C) decrease by more than 18.4 cents. D) stay the same. E) increase by 18.4 cents.
Which of the following statements is not correct?
a. All states have state income taxes, but the percentages vary widely. b. Sales taxes and property taxes are important revenue sources for state and local governments. c. Medicare spending has increased because the percentage of the population that is elderly and the cost of healthcare have both increased. d. A budget deficit occurs when government spending exceeds government receipts.
Which of the following is a common mistake managers make?
A. Treating implicit opportunity costs as part of the total costs of using resources. B. Maximizing the value of the firm instead of maximizing the firm's profits. C. Using marginal analysis to make output decisions. D. Reducing price to increase the firm's share of total market sales. E. all of the above.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.