The Japanese economy is stuck in a recessionary gap. The proper fiscal policy could include a(n)
A. decrease in taxes.
B. increase in government purchases.
C. increase in transfer payments.
D. All of the above are correct.
Answer: D
You might also like to view...
Figure 4.5 illustrates a set of supply and demand curves for hamburgers. An increase in supply and an increase in demand are represented by a movement from
A) point c to point a. B) point d to point a. C) point d to point b. D) point b to point c.
Your friend Tony opened a pizzeria. You helped him to advertise his pizza, which is in fact the best pizza in town. As a result, the demand for Tony's pizza increases and your friend, noticing lines of customers, raises the price of his pizza
But then he fears that the higher price will cause demand to decline, which will cause the price to drop. Is Tony right in his analysis of the situation? Explain.
According to the horizontal-equity principle of taxation
A) individuals who receive the benefits of a good or service should bear a greater share of the tax burden. B) people in the same economic situation should be treated equally. C) individuals who are willing to bear a greater share of the tax burden should be compensated with non-monetary benefits. D) individuals who are most able to pay should bear a greater share of the tax burden.
A market in which firms sell a homogeneous product and cannot influence market price is most likely:
A. a perfectly competitive market. B. an oligopoly. C. a monopolistically competitive market. D. a monopoly market.