________ occurs when households can alter their behavior and do something to legally avoid paying a tax.
A. Tax incidence
B. Tax shifting
C. Tax evasion
D. Tax depreciation
Answer: B
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Refer to Figure 3.6. Answer the following questions about the game represented in the figure:
a. What type of game is represented by the payoff matrix? b. Does Terrance have a dominant strategy, and if so, what is it? c. Does Phillip have a dominant strategy, and if so, what is it? d. At what outcome or outcomes do the players coordinate? e. Are there any Nash equilibria, and if so, what, are they?
A time-series graph reveals whether there is a ________ which represents ________
A) trend in a variable; a general tendency for the variable to rise or fall B) relationship between two variables; a cross-section graph C) trend in a variable; unrelated variables D) relationship between two variables; a trend in a variable
An increase in the sensitivity of private spending (consumption, investment, and net exports) to changes in the interest rate ________ the government purchases multiplier
A) may increase or may decrease B) will not change C) will increase D) will decrease
Suppose the firm's total revenue is $4,000 and its total cost is $1,200 . We know, then, that the firm
a. should produce more to maximize profit b. should lower its price to maximize profit c. should lower average total cost to maximize profit d. should stay where it is because it's maximizing profit e. can't determine what it should do with that incomplete information