Which of the following is TRUE?
a) MPS = MPC
b) MPS + MPC = 1
c) MPS + MPC = 0
d) MPS - MPC = 1
b) MPS + MPC = 1
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An import quota is similar to a ________ in its effect on imports, except that an import quota ________
A) tariff; does not generate revenue B) tariff; generates revenue C) subsidy; does not generate revenue D) subsidy; generates revenue E) tariff; does not result in an efficiency loss.
An example of a lump-sum tax is a(n):
A. income tax. B. property tax. C. sales tax. D. head tax.
Lower deficits should lead to higher levels of private investment spending.
Answer the following statement true (T) or false (F)
Any combination of goods lying outside of the budget line:
A. implies that the consumer is not spending all his income. B. yields less utility than any point on the budget line. C. yields less utility than any point inside the budget line. D. is unattainable, given the consumer's income.