Suppose consumers save 17 percent of their incomes. If the government collects 10 dollar in taxes from each taxpayer and invested it in infrastructure, total social investment will ________ per taxpayer
A) decrease by $1.70 B) increase by $10.17 C) decrease by $8.30 D) increase by $8.30
D
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Discuss the correct and incorrect economic analysis in the following statement
"If good weather in Hawaii creates a bumper crop of pineapples, the supply of pineapples will increase. This will result in a price decrease, which will then cause the supply of pineapples to decrease."
Sonny and his girlfriend are stranded on an island. Sonny can produce 8 cups of berries per day, or 3 ounces of honey. His girlfriend can produce 10 cups of berries per day, or 6 ounces of honey. Explain who has the absolute advantage in berry
production and who has the absolute advantage in honey production. Explain why the person who has the absolute advantage in berry production should not produce berries.
The true value of a good or service may be understated in GDP if different measures of service output fail to reflect improvement in the speed or quality of service
Indicate whether the statement is true or false
When the tax structure of a nation is progressive, as incomes increase, the tax rate:
A. declines. B. remains the same. C. increases. D. is proportional.