According to Arthur Laffer, the graph that represents the amount of tax revenue (measured on the vertical axis) as a function of the size of the tax (measured on the horizontal axis) looks like
a. a U.
b. an upside-down U.
c. a horizontal straight line.
d. an upward-sloping line or curve.
b
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In the long run, firms can vary all inputs in the production process
a. True b. False Indicate whether the statement is true or false
Gains from trade can be realized if each country specializes in the production of a good in which it has a comparative advantage
a. True b. False Indicate whether the statement is true or false
A decrease in the price level will cause:
A. a movement rightward along the short-run aggregate supply curve. B. the aggregate demand curve to shift to the right. C. the long-run aggregate supply curve to shift to the right. D. the short-run aggregate supply curve to shift to the right.
A bagel cost $1 in New York and 0.5 euros in Paris. If the real exchange rate is one-half of a New York bagel for a Parisian bagel, how many euros should you receive in exchange for one dollar?
A. 1.5 B. 0.1 C. 2 D. 0.25