Which of the following is a question answered with positive economic analysis?
A. Should the college provide more financial aid assistance?
B. Should the college offer free parking for students?
C. If the college increased tuition, will class size decline?
D. Should the college cut tuition to stimulate enrollment?
Answer: C
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Using Figure 6-2, calculate the price elasticity of demand (dropping all minus signs) between P = 4 and P = 6.
A. 3.0 B. 0.33 C. 0.40 D. 1.25
The IS curve shifts to the left when
A) taxes increase. B) government spending increases. C) the money supply increases. D) autonomous planned investment spending increases.
In recent years in Russia, the most popular tax system has been
a. graduated rates topping at 13 percent b. a flat rate of 60 percent c. graduated rates topping at 40 percent d. graduated rates topping at 30 percent e. a flat rate of 13 percent
Refer to the accompanying figure.
Starting from long-run equilibrium at point C, a favorable inflation shock that decreases inflation from ? to ?1 will lead to a short-run equilibrium at point ________ creating ________ gap.
A. B; expansionary B. B; recessionary C. A; a recessionary D. A; an expansionary