Suppose there is currently a tax of $50 per ticket on airline tickets. Sellers of airline tickets are required to pay the tax to the government. If the tax is reduced from $50 per ticket to $30 per ticket, then the
a. demand curve will shift upward by $20, and the price paid by buyers will decrease by less than $20.
b. demand curve will shift upward by $20, and the price paid by buyers will decrease by $20.
c. supply curve will shift downward by $20, and the effective price received by sellers will increase by less than $20.
d. supply curve will shift downward by $20, and the effective price received by sellers will increase by $20.
c
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The real GDP data could be properly thought of as
a. an index of our economic well-being. b. a measure of the total wealth of a nation. c. an index of total output or productive activity. d. an index that measures the size of government.
When tastes are risk loving, a person will always choose a gamble that is riskier over one that is less risky.
Answer the following statement true (T) or false (F)
Total output and total income in the circular flow model
A) are measures of the economy's level of savings. B) include only intermediate goods. C) are equal to each other. D) are related because national income is less than national product.
When two variables have been observed to have a tendency to occur at the same time, we can say there is ____________ but not necessarily ____________.
A. causation; correlation B. correlation; causation C. positivity; causation D. normality; correlation