The concept of equity would explain the redistribution from the rich to the poor which is achieved from a tax system that requires taxes to
A. fall when income rises.
B. remain stable when income rises.
C. rise when income rises.
D. be unrelated to income.
Answer: C
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Suppose price is measured along the vertical axis on a graph. When price changes, there will be a
a. rotation of the curve. b. shift of the curve. c. movement along the curve. d. change in the slope of the curve.
Refer to the graph shown. The segment of the demand curve between the initial equilibrium price of $5.00 and the new equilibrium price of $3.00 is:
A. elastic. B. perfectly inelastic. C. inelastic. D. perfectly elastic.
If the marginal utility Ida Mae receives from eating chicken wings is negative then
A) her total utility from eating chicken wings has fallen. B) Ida Mae definitely does not like chicken wings. C) her total utility has risen, but by less from the last chicken wing than from the next to last chicken wing. D) her total utility from eating chicken wings is negative as well.
The ISLM model can be used to derive
A) aggregate demand. B) aggregate supply. C) the money multiplier. D) the long-run economic growth rate.