Refer to Figure 18-1. Of the tax revenue collected by the government, the portion borne by consumers is represented by the area
A) B + C + F + G. B) E + H. C) F + G. D) B + C.
D
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The above figures show the market for gasoline. Which figure(s) shows the effect of a new U.S. tax on oil that suppliers must pay?
A) Figures A and C B) Figures B and D C) Figure A only D) Figure C only
Which of the following statements is correct?
A) PPP is a theory of exchange rate determination. B) Inflation differentials cause changes in exchange rates. C) PPP is an equilibrium relationship between two endogenous variables. D) PPP, or the law of one price, should hold well for individual goods.
Given full-employment output = $2,800, equilibrium output = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full-employment level of national output?
a. $300 decrease in taxes. b. $75 increase in government spending. c. $75 decrease in taxes. d. $300 increase in government spending. e. $75 decrease in government spending.
In what sense is it meaningful to say that fighting poverty is a public good?