Which of the following would cause the equilibrium price of ketchup to increase and the equilibrium quantity of ketchup to decrease?
A) an increase in the price of mustard, a substitute for ketchup
B) a decrease in the price of tomatoes
C) an increase in the price of tomatoes
D) an increase in the price of french fries, a complement for ketchup
C
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If the government proposed a one-time tax of 25% on accumulated wealth, this would likely
A) reduce the incentive for individuals to accumulate wealth. B) increase the incentive for individuals to accumulate wealth. C) have no impact on individual accumulation of wealth since it is a one-time tax. D) All of the above are equally likely to happen.
There is ________ relationship between inflation and central bank independence and ________ relationship between long-run rates of unemployment and central bank independence
A) a negative; no B) a negative; a negative C) a positive; no D) a positive; a negative
Consider a good whose own price elasticity of demand is -1.5 and price elasticity of supply is 0.5. The fraction of a specific tax that is borne by producers is ________
A) 0 B) 0.25 C) 0.5 D) 0.75 E) 1
Markets will always allocate resources efficiently
a. True b. False Indicate whether the statement is true or false