If the government decreases the income tax rate, they assume it will affect which component of GDP?
A. NX
B. C
C. G
D. A change to the income tax rate will not affect any of these components.
Answer: B
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Once people hear what the majority of individuals like them are doing, they are most likely going to choose:
A. something slightly worse, because they don't want to be taken advantage of. B. the same, because they typically don't like to be outliers. C. something better, because they typically want to be special. D. None of these is likely.
Often, gas stations only a few miles apart differ in price by as much as $0.10 per gallon. The most likely explanation for this kind of price discrimination is that:
A. the cost of providing gasoline is the same in each community. B. the elasticity of demand is the same in each community. C. consumers in some communities have a more elastic demand for gasoline than do consumers in nearby communities. D. gasoline purchased at one station is a perfect substitute for gasoline purchased at a station a few miles away.
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in the price of a product that is a complement to X will
What will be an ideal response?
Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia. We can conclude that
A) Australia also has an absolute advantage in producing surfboards relative to New Zealand. B) Australia has a lower opportunity cost of producing surfboards relative to New Zealand. C) New Zealand has an absolute disadvantage in producing surfboards relative to Australia. D) Labor costs are higher for surfboard producers in New Zealand than in Australia.