The Laffer curve shows the exclusively direct relationship that exists between tax rates and tax revenues
Indicate whether the statement is true or false
False
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The above figure shows the market for pizza. The market is in equilibrium when people learn that eating pizza helps prevent heart disease. What point represents the most likely new price and quantity?
A) A B) B C) C D) D E) E
As income increases during the recovery from a recession, automatic stabilizers will:
A. reduce taxes on high-income individuals and raise taxes on the poor, increasing economic inequality. B. increase taxes and decrease government spending, slowing the recovery. C. increase taxes and increase government spending, increasing the overall size of the government. D. reduce taxes and increase government spending, accelerating the recovery.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.
Refer to the graph shown. After an increase in supply, the market is in equilibrium where the demand curve intersects S1. In this new equilibrium, consumer surplus is equal to:
A. 2,700. B. 1,500. C. 2,940. D. 1,260.