In practice, the problems created by time inconsistency and the political business cycle appear to be quite serious
a. True
b. False
Indicate whether the statement is true or false
False
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We say that goods are substitutes when they:
A. serve similar-enough purposes that a consumer might purchase one in place of the other. B. are consumed together, so that purchasing one will make a consumer more likely to purchase the other. C. can replace something consumers typically purchase at a significantly lower price. D. change a consumer's preferences for a good or service.
Barter is the:
a. direct exchange of goods and services. b. exchange of goods, but not services. c. system that does not depend on a coincidence of wants. d. system used in advanced economies.
Answer the following statement(s) true (T) or false (F)
1. The federal income tax is a regressive tax. 2. Regressive taxes take a higher percentage of income from lower-wage earners than from higher-wage earners. 3. Employers shift all the FICA tax burden to employees by paying lower wages. 4. The majority of taxes are efficient. 5. Vertical equity means people of all incomes should pay equal tax percentages.
If the price of automobiles were to decrease substantially, the demand curve for automobiles would most likely
A) shift rightward. B) shift leftward. C) remain unchanged. D) become steeper.