Refer to Figure 4.3. All else equal, an increase in the government's budget deficit accompanied by a decrease in corporate taxes would cause which of the following shifts?
A) S1 to S2 and D1 to D2
B) S2 to S1 and D1 to D2
C) S1 to S2 and D2 to D1
D) S2 to S1 and D2 to D1
B
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A solution concept for a game is
a. a measurement of the game's complexity. b. a way of determining whether the first or second player has an advantage. c. a normative judgment of the desirability of the game's outcome. d. a rule for predicting the game's outcome when it is actually played.
Refer to Figure 2.1. At point B, demand is:
A) small. B) inelastic, but not completely inelastic. C) unit elastic. D) elastic, but not infinitely elastic. E) infinitely elastic.
Assuming the demand curve is more elastic (flatter) than the supply curve, which of the following is true?
a. The full tax is always passed to the consumer no matter how flat (elastic) the demand curve is. b. The full tax is always passed to the seller no matter how flat (elastic) the demand curve is. c. The smaller the portion of a sales tax that is passed to the consumer. d. It does not make any difference how flat (elastic) the demand curve is; the tax is always split evenly between buyer and seller.
Consuming one more of a good increases its marginal-utility-to-price ratio, and consuming one less of the other good lowers its marginal-utility-to-price ratio
Indicate whether the statement is true or false