Which of the following, if true, would most effectively back the argument that raising cigarette taxes reduces the number of people who smoke cigarettes?
A. The supply for cigarettes is relatively elastic.
B. The demand for cigarettes is relatively elastic.
C. The supply for cigarettes is relatively inelastic.
D. The demand for cigarettes is relatively inelastic.
Answer: B
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Which of the following is a positive statement?
a. Driving speeds should be lowered so that fewer accidents will occur. b. When per capita income falls, fewer meals are consumed at restaurants. c. The minimum wage is too low; college students deserve a raise. d. Cigarette sales should be made illegal in order to reduce the incidence of cancer. e. Social Security is a good program for U.S. workers.
Firms choose the highest indifference curve they can obtain given the lowest possible budget line
a. True b. False Indicate whether the statement is true or false
The AD curve will shift when there is a change in:
A. the inflation rate or the money growth rate. B. the money growth rate or the velocity growth rate. C. the real growth rate or the inflation rate. D. the velocity growth rate or the real growth rate.
In an inflationary gap, equillibrium ______ full-employment GDP
Fill in the blank(s) with the appropriate word(s).