The formula for price elasticity of demand that is used in practice
a. usually drops all minus signs.
b. usually takes on different values at different points on the demand curve.
c. may calculate the percentage change in price between P1 and P2 as "(P2 ? P1) as a percentage of (P1 + P2)/2."
d. All of the above are correct.
d
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Which of the following statements best represents the opinion of many economists regarding the impact that changes in tax laws have had on recent changes in income inequality in the United States?
A) Reductions in income tax rates have favored high-income individuals more than low-income individuals. As a result, reductions in federal income tax rates have led to more income inequality. B) Reductions in income tax rates probably have had little impact on the distribution of income. C) Reductions in income tax rates have created greater incentives for low-income individuals to work, save, and invest. As a result, reductions in federal income tax rates have led to less income inequality. D) Reductions in income tax rates have been offset by increases in corporate income tax rates and payroll taxes. As a result, greater income inequality in the 1990s has been followed by a more equal distribution of income since 2001.
A recent push in development economics is to:
A. fund only those programs that prove to be effective. B. put more focus on a program's effectiveness. C. stop the trial and error process of funding programs that "might" work. D. All of these statements are true.
Which of the following combinations would unambiguously decrease the supply of money? a. The Fed pays a lower interest rate on bank reserves and increases the required reserve ratio
b. The Fed conducts an open market purchase of government securities and raises the discount rate. c. The Fed pays a higher interest rate on bank reserves and conducts an open market purchase of government securities. d. None of the above would unambiguously decrease the supply of money.
Which of the following statements about deposit/refund systems is INCORRECT?
a. Most deposit/refund systems in the United States are used for beverage containers and lead-acid batteries. b. Some nations use deposit/refund systems for automobile bodies. c. The deposit is imposed at the time of purchase like a retail disposal charge. d. To be a viable system, the refund must be exactly equal to the deposit.