Which of the following transactions would take place in the "underground economy"?
A) Elizabeth tells her mother she's going to work but really goes to see a movie.
B) Paul buys 15 gallons of gasoline for $3.29 a gallon, not realizing that $1.50 per gallon of that price goes to the government as tax revenue.
C) John makes chain-link belts and necklaces and sells them at a local flea market for cash to avoid paying taxes.
D) Matt bought an iPad for $499 but decided to sell it on eBay instead of keeping it.
Answer: C
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Consider the graph. What would most likely be the cause of a shift from D1 to D2?
A. A tax on sellers
B. A tax on buyers
C. A subsidy for sellers
D. A subsidy for buyers
Which of the following is true? a. The Rule of 70 says that the number of years necessary for a nation to double its output is approximately equal to the nation's growth rate divided by 70. b. Economic growth is usually measured by the annual percent change in the nominal output of goods and services per capita. c. An increase in labor input necessarily increases output per capita
d. Neither the initial development process nor the sustained growth of an economy is dependent on a large natural resource base.
Many economists believe that competitive, market economies provide a natural antidote to employer discrimination known as the
Figure 7-5
Which of the graphs in Figure 7-5 could be a firm's total fixed cost curve?
a.
(a)
b.
(b)
c.
(c)
d.
(d)