If income increases due to a decrease in taxes, then
A) utility will increase because consumers can afford a larger bundle of goods.
B) utility will fall because consumers will be forced to buy a smaller bundle of goods.
C) utility will remain constant.
D) utility will increase because consumers will be forced to buy a smaller bundle of goods.
A
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In general, the more complex the tax the:
A. more tax revenues it will generate. B. more efficient it will be. C. higher the administrative burden will be. D. more deadweight loss it will create.
If firms are producing at a profit-maximizing level of output where the price exceeds the average total cost:
A. economic profits must be zero. B. accounting profits must be negative. C. other firms will enter the market. D. firms will exit the market.
Economists define inflation as
The price of necessities like food and gasoline. How fast on average prices are rising in a given period of time The value of the dollar Average house prices in a given area
On average over the last century, the U.S. population has grown three times as fast as the U.S. real GDP.
Answer the following statement true (T) or false (F)