Suppose the price of beef declines by $0.50 per pound at the supermarket. Consumers of beef immediately increase their purchases of beef. This illustrates:
a. the fact that beef is an inferior good.
b. the cross-elasticity effect of a price decrease.
c. the substitution effect of a price decrease.
d. the fact that beef is an economic bad.
e. the income effect of a rise in price.
c
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In any given year, many people at the tails of the income distribution are only there temporarily _____
a. because of changes in the tax code b. making it difficult to track them for determining progressivity c. thereby overstating the progressive nature of the tax system d. making it important to look at the progressivity of the tax system in terms of lifetime income
Legislators often have difficulty passing legislation with widespread benefits, but that imposes concentrated costs because those who bear the costs will __________ the legislation, while those who would reap the benefits will __________ the legislation
a. protest; actively support b. not protest; not actively support c. not protest; actively support d. protest; not actively support e. protest; protest
Which of the following is most likely to belong to a union?
a. a government employee b. a salesperson c. a chef at a four-star restaurant d. a taxi driver
The amount of income people have left after taxes is called
A. boot. B. net profit. C. disposable income. D. excise income.