If an excise tax is imposed on shirts,
a. the number of shirts produced will exceed the number demanded
b. the number of shirts demanded will exceed the number supplied
c. the equilibrium market price will decrease
d. the amount consumers pay for each shirt will decrease
e. the net revenue producers receive from each shirt will decrease
E
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All of the following are examples of spending on goods and services in the circular flow model except
A) Chaitanya buys a new spa pedicure chair for her expanding nail salon business. B) Hernan buys a pizza at Papa C's. C) Lenny buys a new digital camera to take pictures at his son's graduation. D) Amanda purchases a new electric guitar to pursue her hobby seriously.
If there is limited commitment and the government is no better at collecting on its debts than is the private sector, then
A) Ricardian equivalence holds. B) the private sector can benefit from a government loan program. C) Ricardian equivalence does not hold. D) the Fisher relation does not hold.
A 2.9 percent payroll tax (1.45 percent levied on both the employee and the employer) imposed on current workers is used to finance the
a. Medicaid program that provides healthcare for the poor. b. hospitalization costs of Medicare beneficiaries. c. cost of physician services supplied to the elderly. d. healthcare costs of both the elderly and the poor.
Suppose that the share of population employed in Country C is 50 percent, and that Countries C and D have the same real GDP per capita. Based on the information in the table, what share of Country D's population must be employed?CountryPopulation (millions)Average Labor Productivity ($)A1002,000B15010,000C7525,000D25050,000E9560,000
A. 100.0 percent B. 75.0 percent C. 12.5 percent D. 25.0 percent