The typical value for the MPC is less than 1.0
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
One of the principles behind the concept of the circular flow is that
A) in every economic exchange, the seller receives exactly the same amount that the buyer spends. B) in every economic exchange, the seller receives less than the amount that the buyer spends. C) in exchange involving products, the seller receives less than the amount the buyer spends, but in resource markets the seller receives more than the buyer spends. D) the seller of goods receives exactly the same amount that the buyer spends, but the seller of resources receives less than the buyer spends.
Using sharp increases or decreases in taxes rather than deficits is a better way to prevent distortions in an economy
Indicate whether the statement is true or false
Suppose the demand curve for a good is highly elastic and the supply curve is highly inelastic. If the government taxes this good,
a. buyers and sellers will each share 50 percent of the burden, regardless of the elasticities of the demand and supply curves. b. sellers will bear a larger share of the tax burden. c. the distribution of the burden will depend upon whether the buyers or the sellers are required to send the tax to the government. d. buyers will bear a larger share of the tax burden.
Which of the following will not cause a change in the demand for product A?
A. A change in the number of buyers B. A change in the price of A C. A decline in consumer incomes D. A decrease in the price of close-substitute product B