The income of consumers increases. and the wage rate in the DVD industry increases. As a result
A) the price of DVDs stays the same and the quantity sold can either increase or decrease, depending on whether the change in demand is greater than the change in supply.
B) the price of DVDs increases and the quantity sold can either increase, decrease or stay the same depending on whether the change in demand was greater than the change in supply.
C) the equilibrium quantity sold increases and price can either increase or decrease, depending on whether the change in demand is greater than the change in supply.
D) the equilibrium quantity sold can either increase or decrease and the price can either increase or decrease, depending on whether the change in demand was greater than the change in supply.
B
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Which of the following is a disadvantage of the command-and-control approach to the problem of pollution?
A) It creates licenses to pollute. B) It is undemocratic. C) It only works in societies where everyone (or almost everyone) has a high degree of environmental consciousness. D) It usually overlooks less costly ways to achieve given goals. E) It violates property rights.
A tax is regressive if the average tax rate
A) increases as income increases. B) increases as income decreases. C) is negative. D) is less than one.
Which program provides assistance to the aged, blind and disabled?
A) Social Security Program B) Supplemental Security Income program C) TANF D) Earned Income Tax Credit
Fiscal policy can:
A. cause inflation. B. have real effects on the economy in the short run. C. bring the economy to its long run equilibrium faster than it can correct itself. D. All of these are true.