In housing market rent serve the purpose of
A) making landlords rich.
B) rationing the availability of existing housing.
C) providing an entry by the government into the housing market.
D) increasing tax collections by the community.
Ans: B) rationing the availability of existing housing.
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The idea that two taxpayers in the same economic circumstances should pay the same level of taxes is known as the
A) vertical-equity principle. B) benefits-received principle. C) horizontal-equity principle. D) ability-to-pay principle.
According to crude versions of the quantity theory of money
A. the money supply determines the real interest rate in equilibrium. B. the general price level is determined strictly by the real costs of production. C. the general price level is exactly proportional to the money supply in equilibrium. D. increases in the money supply will increase output and employment in the long run.
If the market price for a good produced by a price taking firm is $5, the firm's total revenue is
A. downward sloping. B. a flat line at P=$5. C. an upward sloping line beginning at the origin and having a slope of 5. D. parabolic.
"If the currency drain increases, the monetary base decreases." Explain whether the previous statement is correct or incorrect
What will be an ideal response?