Which of the following will result in an upward rotation of the consumption function?
a. A decrease in the proportional tax rate on income
b. An increase in consumer income
c. An increase in the flat tax rate
d. A decrease in the flat tax rate
a
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High inflation makes money ________ because ________
A) function better as a store of value; it leads to a more accurate allocation of resources B) function less well as a store of value; the money loses value and therefore has less purchasing power C) function better as a store of value; the money gains value and therefore has greater purchasing power D) function better as a unit of account; money never loses value but it does gain purchasing power in some regions E) function less well as a store of value; it decreases the price level and increases the buying power of money
What is opportunity cost?
What will be an ideal response?
Suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. The labor force participation rate will
A) decrease. B) remain constant. C) increase. D) not change in a way that can be predicted.
Refer to Figure 9.1. If the government establishes a price ceiling of $20, how many widgets will be sold?
A) 20 B) 30 C) 40 D) 50 E) 60