The impact of an increase in the gasoline tax on sales of electric vehicles is
A. not an economic issue, but rather a political issue.
B. a macroeconomics topic because it deals with taxes.
C. a microeconomics topic because it deals with one industry.
D. a normative issue and so it is not an economic topic.
Answer: C
You might also like to view...
According to this Application, the decrease in consumer wealth due to decreases in the value of home equity has
A) decreased consumer spending. B) decreased the marginal propensity to save. C) increased short-run aggregate supply. D) increased consumer saving.
Demand deposits are
a. coins and currency b. the same as time deposits c. included in M2 and M3 but not M1 d. gold bars in the Federal Reserve System e. funds in checking accounts
Under uncovered interest parity, if the domestic interest rate is greater than the foreign interest rate, then exchange rates are:
A) expected to rise. B) expected to stay constant. C) expected to fall. D) uncertain.
You purchase both potatoes and gasoline regularly. Your income increases and you purchase more gasoline and less potatoes. This implies that
A. gasoline has a negative substitution effect. B. gasoline is a normal good. C. gasoline is an inferior good. D. potatoes are normal goods.