Price floors are illegal in the United States
Indicate whether the statement is true or false
FALSE
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Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so, how?
What will be an ideal response?
When the government decides to impose a tax on sellers of a good or service, sellers try to pass the tax on to consumers by raising the price of the good being sold
Assume the government decides to place a $1 tax on each unit of a good sold, e.g., tires. Using the simple model of supply and demand, illustrate what would happen to the price and quantity of tires sold. Would the amount of tax paid by the consumer (as opposed to the producer) be greater when demand is elastic or inelastic? Why?
Which of the following is NOT correct?
A.) The Hawai'ian island chain will subduct in approximately 40 my. B.) The newest Hawai'ian island, Lo'ihi, should reach the surface in around 10,000 years. C.) Measured from the seafloor to its summit, Mauna Kea is the tallest mountain on Earth. D.) The formation of the island of Hawaii took less than 1 my.
The principal benefit of unemployment insurance is that it
a. reduces the occurrence of unemployment in the economy. b. replaces income lost due to unemployment. c. increases labor force participation. d. helps reduce the period of unemployment.