When the government taxes and spends, each activity affects GDP in the same proportion.
Answer the following statement true (T) or false (F)
False
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The buyer will pay the entire tax levied on a good when the demand for the good is ________ or when the supply of the good is ________
A) perfectly elastic; perfectly inelastic B) perfectly elastic; perfectly elastic C) perfectly inelastic; perfectly inelastic D) perfectly inelastic; perfectly elastic E) unit elastic; unit elastic
The demand for steak is _______________________ than is the demand for food because _____________________.
A. less price elastic; the scope of the market for steak is more broadly defined B. more price elastic; the scope of the market for steak is more broadly defined C. less price elastic; the scope of the market for steak is less broadly defined D. more price elastic; the scope of the market for steak is less broadly defined
If nominal GDP rises from $5 billion to $6 billion, when the GDP deflator goes from 100 to 110, real GDP a. rises
b. falls. c. stays the same. d. could either be rising or falling.
Jane decides to spend four hours working overtime rather than going to a family gathering. She earns $12.50 per hour for overtime work. Her opportunity cost of working is
a. the $50 she earns working. b. the $50 minus the enjoyment she would have received from going to the family gathering. c. the enjoyment she would have received had she gone to the family gathering d. nothing, since she wanted to work more than she wanted to attend the family gathering