Suppose the demand for good x is ln Qxd = 21 ? 0.8 ln Px ? 1.6 ln Py + 6.2 ln M + 0.4 ln Ax. Then we know goods x and y are:
A. complements.
B. inferior goods.
C. normal goods.
D. substitutes.
Answer: A
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The price elasticity of demand for purses is measured in what units?
A) dollars B) purses C) dollars per purse D) The price elasticity of demand is a unitless measure.
One method of dealing with the unfairness of substantial price increases caused by a national crisis is for government to
a. impose price ceilings and allocate goods by issuing ration coupons b. print ration coupons and allow buyers to bid for them c. shift the supply curve to the left d. impose price floors to protect consumers e. shift the demand curve to the right
Suppose a taxpayer has an income of $90,000 and a taxable income of $75,000, and pays $7,500 in taxes. If the taxpayer says he is taxed at a 10 percent tax rate, he is referring to the
A. Marginal tax rate. B. Vertical tax rate. C. Effective tax rate. D. Nominal tax rate.
Are public goods excludable? Are they rival in consumption?