Society might argue that there are cases in which it is appropriate to resist price increases in situations where scarcity is serious. Included would be the case of
A. unrestrained monopoly that would otherwise succeed in extracting funds from the public.
B. taxes imposed on products capriciously and inappropriately.
C. rising prices falling so heavily on the poor that rationing becomes preferable.
D. All of the responses are correct.
Answer: D
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Which of the following is included in government purchases?
a. unemployment benefits a state pays b. Social Security payments the U.S. government makes c. the services of a U.S. government attorney valued at the cost of her salary d. All of the above are correct.
Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. Suppose consumers' income is $50,000 and the price of satellite TV service is $90. How many households would demand cable TV if it were free?
A. No households B. 15,000 households C. 67,000 households D. Every household would demand cable TV if it were free.
Investment is important to the short run health of the economy because it
a) is the largest component of GDP b) is countercyclical, and thus stabilizing c) is highly volatile, and thus contributes largely to business cycles d) can be easily controlled by government e) is highly predictable, and thus useful for forecasting
According to supply-siders, tax cuts should increase aggregate supply.
Answer the following statement true (T) or false (F)