A movement along the AE curve arises from a change in ________, and a movement along the AD curve arises from a change in ________
A) the price level; the price level
B) real GDP; investment
C) real GDP; the price level
D) the price level; investment
E) investment; the price level
C
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If low-income households spend a larger share of their income on food than do high-income households, then a tax on food is:
A. a way to redistribute from the wealthy to the poor. B. a regressive tax. C. a proportional tax. D. a progressive tax.
Which of the following is NOT true?
A. An extensive form game is most useful for sequential-move games. B. The notion of credible threats makes more sense in normal-form representations than in extensive form representations of a game. C. An extensive form representation usually provides more information than a normal-form representation of a game. D. The notion of perfect equilibrium is more useful in analyzing extensive form games than normal-form games.
Often single-owner proprietorships seem more profitable than they really are. The reason for this is that
A. they are not allowed to deduct depreciation expense. B. they often fail to consider the opportunity cost of the labor provided by the owner. C. they receive special tax benefits compared to corporations. D. they use different accounting procedures.
If the median voter voted against a project, we can infer that
A) at least half of the voters also voted against it. B) at most a third of the voters voted against the project. C) the project was approved. D) at least half of the voters voted in favor of the project.