When a tax is placed on sellers:
A. sellers always bear a higher incidence than buyers.
B. buyers always bear a higher incidence than sellers.
C. the effect on the price buyers pay and sellers receive is the same as a tax on buyers.
D. None of these is true.
C. the effect on the price buyers pay and sellers receive is the same as a tax on buyers.
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If market participants rely only past stock prices to forecast future stock prices,
A) they will be better able to forecast future price increases than future price decreases. B) they will be better able to forecast future price decreases than future price increases. C) they have adaptive expectations. D) they have rational expectations.
If the government announces a big tax cut, which of the following combinations of events would be most likely to occur?
a. An upward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve b. A downward shift of the aggregate expenditure line, a leftward shift of the money demand curve, and a leftward shift of the aggregate demand curve c. An upward shift of the aggregate expenditure line, a leftward shift of the money demand curve, and a rightward shift of the aggregate demand curve d. A downward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve e. An upward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a leftward shift of the aggregate demand curve.
As price levels change, the purchasing power of income and wealth has varying effects on the level of consumption spending in an economy. This is called the _____
a. interest rate effect b. exchange rate effect c. wealth effect d. accelerator effect
Some suggest that many New York taxi drivers set an income goal for the week and finish work once they have achieved that goal. Since the effective hourly wage is higher on busy days, choosing to stop working when a particular income goal is reached is:
A. consistent with an upward-sloping labor supply curve since the quantity of labor supplied is higher when the wage is higher. B. consistent with an upward-sloping labor supply curve since the quantity of labor supplied is lower when the wage is higher. C. inconsistent with an upward-sloping labor supply curve since the quantity of labor supplied is higher when the wage is higher. D. inconsistent with an upward-sloping labor supply curve since the quantity of labor supplied is lower when the wage is higher.