When the supply of a good decreases and its demand increases by the same amount:
a. Price will change in the same direction as the shift in demand
b. Price will change in the same direction as the shift in supply.
c. Quantity exchanged will change in the same direction as the shift in supply.
d. Quantity exchanged will change in the same direction as the shift in demand.
a
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A head tax applied to each person in the United States would
A. always be proportional. B. not significantly distort incentives to work. C. generally be a progressive tax. D. likely have significant shifting of tax incidence.
The most important determinant of price elasticity of supply is
a. price elasticity of demand b. technological conditions such as how rapidly costs increase when a firm increases its output c. whether the production process relies heavily on capital or on labor d. the number and closeness of available substitutes e. whether the product is a normal good or an inferior good
A miniature golf course is a good example of where fixed costs become relevant to the decision of when to open and when to close for the season
a. True b. False Indicate whether the statement is true or false
Which of the following is not an example of in-kind transfers?
A. Food stamps. B. Housing subsidies. C. Medicaid benefits. D. Social Security payments.