A tax that is placed on the quantity of the item being purchased, such as gallons of it, is called a(n)
A. Excise tax.
B. Property tax.
C. Income tax.
D. None of the choices are correct.
Answer: A
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Using the concept of income and substitution effects, explain how you might react to each of the following:
(a) You currently work 20 hours a week at $10 per hour and your employer tells you he must reduce your wage to $8 per hour. (b) The price of pizza doubles and the price of hamburgers remains constant.
The growth accounting equation suggests that the growth rate of output is equal to the growth rate of ________
A) total factor productivity plus the contributions of both capital and labor B) total factor productivity minus the rate of depreciation C) capital and labor D) the overall population
The index used for international price comparisons is the:
A. World Bank's International Comparison Program index. B. World Bank's World Price Index. C. United Nations' World Consumer Price Index. D. World Trade Federation's International Price Index.
If people buy more than has been produced,
A) the economy is in equilibrium. B) total expenditures are greater than total production. C) there will be an increase in inventory. D) there will be a decrease in total output.