Suppose the federal excise tax rate on gasoline is increased by 50 percent. Which of the following is the most likely impact on the tax revenue derived from the federal gas tax?
a. Tax revenues will increase by less than 50 percent.
b. Tax revenues will increase by 50 percent.
c. Tax revenues will increase by more than 50 percent.
d. The revenue from the gasoline tax will go to zero.
A
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If we have a small standard error, then
A) the estimated coefficient is small. B) the true demand function has imprecise coefficients. C) the expected variation of the estimated coefficient is small. D) the estimated coefficients are imprecise indicators of the true values.
Using demand and supply curves for the Japanese yen based on the $/¥ price for yen, an increase in US INFLATION RATES would
a. Decrease the demand for yen and decrease the supply of the yen. b. Increase the demand for yen and decrease the supply of the yen. c. Increase the demand and increase the supply of yen. d. Decrease both the supply and the demand of yen. e. Have no impact on the demand or supply of the yen.
In the long run, entry and exit in a perfectly competitive market will drive the price to the point where the: a. marginal cost curve intersects the average total cost curve at its minimum
b. marginal cost curve intersects the marginal revenue curve. c. marginal cost curve intersects the average variable cost curve at the shutdown point. d. marginal cost curve intersects the market demand curve.
Which of the following shifts aggregate demand to the left?
a. The price level rises. b. Interest rates fall. c. The dollar depreciates for some reason other than a change in the price level. d. Stock prices fall for some reason other than a change in the price level.