All taxes impose an excess burden.
A. True
B. False
C. Uncertain
B. False
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Changes in prices of a good causes
a. Movement along the demand curve b. Movement along the supply curve c. No effect to either curve d. Both a and b
Differentiate between consumer’s surplus and producer’s surplus. For a rational consumer, consumer’s surplus will never be a negative number. Why?
What will be an ideal response?
When housing prices increase, household wealth ________, and consumption ________.
A. decreases; decreases B. increases; decreases C. decreases; increases D. increases; increases
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary