Which of the following is NOT true about this national income equation:
A) For the current account, CA, to improve, we may have to invest less than otherwise would be the case.
B) For the current account, CA, to improve, we may have to save less to maintain the same amount of investment that includes foreign saving.
C) For the current account, CA, to improve, the government may have to run budget surplus.
D) A reduction in the trade deficit with one country will simply show up as an increase in a trade deficit with another country.
B
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________ is the measure of the sensitivity of one variable to a change in another
A) Multiplier B) Elasticity C) Amplitude D) Buoyancy
In which of the following situations would supply be the most elastic?
a. An auto parts manufacturer is operating at capacity. b. A real estate developer in Boston is looking to build condos on the waterfront. c. A furniture manufacturer is operating its factory 8 hours per day. d. A hotel has all of its rooms booked for each night of the next 3 months.
Which of the following changes will occur to the market for movie tickets when the cost of electricity to operate the air conditioner rises dramatically.
A . The supply curve will shift out, causing the price to increase and the quantity to decrease. B. The supply curve will shift out, causing the price to decrease and the quantity to increase. C. The supply curve will shift in (up and back), causing the price to decrease and the quantity to increase. D. The supply curve will shift in (up and back), causing the price to increase and the quantity to decrease.
Answer the following statement true (T) or false (F)
1) About two-thirds of all federal spending is for national defense. 2) A progressive tax takes relatively more from the rich than it does from the poor. 3) The benefits-received principle of taxation is used to support corporate and personal income taxes. 4) Sales taxes are proportional in relation to income because the same tax rate applies regardless of the size of a purchase.