A consumption tax would lead to an increase in the supply of loanable funds and a decrease in real interest rates
a. True
b. False
Indicate whether the statement is true or false
True
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A cancer patient is told he needs chemotherapy in order to live three more years at best, but the patient's final three years will be filled with all the terrible side-effects of the treatment
Without it, he will surely die within a year, but his quality of life would be a better. Suppose he chooses to quit chemotherapy and instead he spends his time learning to play the cello, something he always wanted to learn. The economic way of thinking suggests A) others should consider playing the cello while they are still young and healthy. B) the doctors were absolutely right—the patient needs chemotherapy. C) the patient considers playing the cello a substitute for chemotherapy. D) the patient has clearly given up his will to live.
Refer to the figure above. What is the change in total revenue due to a price reduction from $6 to $4?
A) The total revenue increases by $300. B) The total revenue decreases by $600. C) The total revenue increases by $200. D) The total revenue increases by $600.
If a society were to use a widely accepted, easily measurable, but highly perishable food product as commodity money, then the ________ function of money would most likely fail
a. medium of exchange b. unit of account c. store of value d. transfer of value
Tickets for the Super Bowl are an example of supply that is
A) perfectly elastic. B) unit elastic. C) slightly inelastic. D) perfectly inelastic.