If a household's real taxes increase by one unit, then
a. real government transfers to the household decreae by one unit.
b. the real return on capital services falls by one unit.
c. real government transfers to the househould increase by one unit.
d. real disposable income falls by one unit.
Answer: d. real disposable income falls by one unit.
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Which of the following is a defining characteristic of all perfectly competitive markets?
A. Consumers display strong brand loyalty. B. All firms sell the same standardized product. C. Each firm in the market faces a perfectly inelastic demand curve. D. The market demand curve is perfectly elastic.
Cost curves shift if i. technology changes. ii. the prices of factors of production change. iii. productivity changes
A) only i B) i and iii C) only ii D) i and ii E) i, ii, and iii
Charging different prices to different consumers for the same product when the price differences are not due to differences in cost is called arbitrage
Indicate whether the statement is true or false
Explain the difference between diminishing returns to labor and diminishing marginal returns to labor
What will be an ideal response?