If the price elasticity of demand for a good is elastic, then consumers are relatively unresponsive with respect to the quantity purchased when the price changes
a. True
b. False
Indicate whether the statement is true or false
False
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The deadweight loss of an income tax is determined by the
a. amount of total tax revenue to the government. b. marginal tax rate. c. average tax rate. d. ability-to-pay principle.
A key idea of the new growth theory is that
A. technology is not an important determinant of economic growth. B. the rewards associated with technological advances have little to do with the actual rate of invention or innovation. C. economic growth is not as important as leisure time growth. D. the greater the rewards for technological advances, the greater the number of technological advances.
The official unemployment rate may understate the true rate of unemployment because of
A. increases in worker productivity. B. discouraged workers who no longer are actively seeking work and are excluded from the statistics. C. changes in wage rates. D. workers who hold two jobs.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 30 B. exactly 60 C. fewer than 30 D. more than 30