If a 20% increase in price for a good results in a 15% decrease in quantity demanded, the price elasticity of demand is
a. 0.75.
b. 1.25.
c. 1.33.
d. 1.60.
a
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Which of the government policies below is not likely to encourage per capita economic growth?
a. High taxes on companies that spend a lot on capital formation b. The use of tax revenues for investment and capital formation c. Special subsidies for capital-intensive forms of production d. Promotion of education and training programs for workers
All goods and services are sold in perfectly competitive markets
a. True b. False Indicate whether the statement is true or false
The resources that a taxpayer devotes to complying with the tax laws are a type of
a. marginal tax. b. administrative burden. c. deadweight loss. d. Both b and c are correct.
Which of the following statements is TRUE?
A. consumption + saving = personal income B. consumption - investment = disposable income C. consumption + saving = disposable income D. consumption - saving = personal income