All economic questions arise from the fact that resources are scarce
Indicate whether the statement is true or false
TRUE
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If an excise tax reduces economic surplus why does the government impose the tax?
A. The marginal benefits of programs funded by the tax is worth the marginal cost. B. The opportunity cost of having the tax is higher. C. Tax revenue is scarce and the government needs to tax the right goods. D. The government needs the money to get out of debt.
In a housing market with no rent ceilings, the equilibrium rent is that for which the quantity of apartments demanded
A) equals the quantity supplied. B) is greater than the quantity supplied. C) is less than the quantity supplied. D) might be greater than, equal to, or less than the quantity supplied depending on whether the supply curve is upward sloping, horizontal, or vertical. E) None of the above answers is correct because without rent ceilings there is no equilibrium rent.
The majority of money is created when
A) banks make loans. B) new coins are minted. C) the federal government borrows from the public. D) the Fed sells bonds.
Refer to the information above. If an economy has a real GDP doubling-time of 48 years, this can be reduced to 30 years if annual GDP growth is raised by ________ percentage points
A) 4 B) 2.4 C) 1.6 D) 0.9