A helpful way to put government revenues into context is to think about it:
A. as an average amount paid per taxpayer.
B. as a percentage of the country's GDP.
C. by comparing the percentage of a country's GDP collected in taxes to other countries' percentage of GDP.
D. All of these approaches can be helpful in understanding tax revenues.
D. All of these approaches can be helpful in understanding tax revenues.
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When property rights are assigned and transactions costs are low,
A) all costs and benefits are taken into account by the transacting parties so the transaction is efficient. B) externalities will result in market failure. C) the marginal social benefit curve shifts leftward and the marginal social cost curve does not shift. D) the marginal social cost curve shifts rightward and the marginal social benefit curve does not shift. E) the marginal social cost curve shifts rightward and the marginal social benefit curve also shifts rightward.
How do you interpret the value of income elasticity?
What will be an ideal response?
The real-income effect shows that
A. a decrease in the price of a good increases the purchasing power of the consumer's income. B. when the price of a good rises, consumers are able to buy more of other goods because of the increase in the purchasing power of income. C. if a good is inferior, a decrease in the purchasing power of income results in less of the good being consumed. D. if the consumer's income rises, he or she buys more of inferior goods and less of normal goods.
Ford F-150 trucks, Production of this good is likely to fluctuate _____ fluctuations of real GDP during the business cycle.
Fill in the blank(s) with the appropriate word(s).