Which of the following is true of net taxes?
a. The level of net taxes varies directly with the level of transfer payments.
b. The level of net taxes varies inversely with the level of transfer payments.
c. Net taxes must always be less than zero
d. Net taxes increase when income tax rates are reduced.
e. Net taxes increase when income decreases.
b
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Suppose that one can read a graph that shows information about price and quantity of some product. Relying solely on the graph, is it possible to explain the relationship between the two variables?
What will be an ideal response?
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
The Coase Theorem is the proposition that if the number of involved parties is low, if property rights ________ and transactions costs are ________, then private transactions are efficient
A) are nonexistent; low B) exist; high C) are nonexistent; high D) exist; low
Describe and explain a perfectly competitive firm's short-run supply curve.
What will be an ideal response?