Economist Arthur Laffer made the argument that tax rates in the United States were so high that reducing the rates would increase tax revenue
a. True
b. False
Indicate whether the statement is true or false
True
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An increase in demand for chocolate chips results in a(n)
a. higher equilibrium price and a lower equilibrium quantity b. lower equilibrium price and a lower equilibrium quantity c. lower equilibrium price and a higher equilibrium quantity d. higher equilibrium price and a higher equilibrium quantity e. increase in the supply of chocolate chips
Suppose you observe that the price of movie admissions decline and that the number of people attending movies declines as well. If only the demand curve or the supply curve shifts, this suggests that
A. movie theaters have experienced an increase in their operating costs due to increases in the minimum wage. B. high salaries for Hollywood actors have increased the cost of movie making. C. admission prices for other types of entertainment, such as live shows and sporting events, have also declined. D. movies are a normal good and incomes have increased.
The effective rate of protection measures
A) the "true" ad valorem value of a tariff. B) the quota equivalent value of a tariff. C) the efficiency with which the tariff is collected at the customhouse. D) the protection given by the tariff to domestic value added. E) the difference between domestic and foreign prices of the import.
An organization that brings together the factors of production is called
A) an industry. B) a conglomerate. C) a plant. D) a firm.