Vertical and horizontal equity are widely accepted and applying them to evaluate a tax system is always straightforward
a. True
b. False
Indicate whether the statement is true or false
False
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In the above figure, if D2 is the original demand curve for a normal good and income decreases, which price and quantity might result?
A) point a, with price P2 and quantity Q2 B) point b, with price P1 and quantity Q1 C) point c, with price P3 and quantity Q3 D) point d, with price P1 and quantity Q3
Assume the following: M = $500; V = 10; and P = $10. If the money supply then increases by 50 percent while total transactions triple, the new value of the price level will be
a. $10. b. $2.50. c. $7.50. d. $5.
For an inferior good, a rise in price causes
a. negative income and substitution effects b. positive income and substitution effects c. a negative income effect and a positive substitution effect d. a positive income effect and a negative substitution effect e. a positive income effect, but no substitution effect
The dominant firm in an oligopoly changes its prices, and then its competitors do likewise. This is an example of ______.
a. price leadership b. tying c. price discrimination d. merging