When taxes are decreased, disposable income increases even though GDP is unchanged
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases. What are we sure of?
A) Both equilibrium price and quantity increase. B) Equilibrium price increases. C) Equilibrium price decreases. D) Equilibrium quantity increases. E) Equilibrium quantity decreases.
The marginal benefit of pollution abatement is the
A) additional cost to clean up an additional unit of pollution. B) additional benefit from cleaning up an additional unit of pollution. C) total social costs of pollution clean-up divided by total social benefits. D) total social costs of pollution clean-up divided by the total units of clean-up.
Technological breakthroughs, such as the Internet, can be shown with a rightward shift of the aggregate supply curve.
Answer the following statement true (T) or false (F)
Tickets to the Indiana-Purdue basketball game are usually sold out in advance of game day. This suggests:
A. the price of the tickets must be very high or else people would not consider them valuable. B. the price is set below the equilibrium level. C. the Indiana basketball stadium is relatively small. D. everyone who attends the game will enjoy it.