When measuring GDP for a particular year, economists exclude the value of used furniture bought and sold because
What will be an ideal response?
it was counted in GDP in some previous year. correct
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One reason why the price elasticity of demand for cigarettes is large for young smokers is that
a. they have large discretionary incomes b. the price of cigarettes increased recently c. they are no longer permitted to smoke in public d. cigarette advertising on television has been banned e. the proportion of income a young smoker spends on cigarettes is usually quite large
The benefits-received principle of taxation is most evident in:
A. progressive tax rates. B. excise taxes on gasoline. C. the personal income tax. D. the corporate income tax.
A perfectly competitive firm is a price taker because
A. It has market power. B. Its products are differentiated. C. Market supply is upward-sloping. D. The price of the product is determined by many buyers and sellers.
Which of the following is more likely to be effective in increasing the growth rate of real GDP?
A) temporary cuts in income taxes B) permanent cuts in business taxes C) a one-time personal income tax rebate D) All cuts in taxes are equally likely to increase the growth rate of real GDP.