Using the above figure, which of the lines in the above diagram represents a proportional tax?
A) A
B) B
C) C
D) none of them
B
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The poverty rate is an absolute level of income set by the federal government for each family size. A family with income below this rate is deemed to be in poverty
a. True b. False Indicate whether the statement is true or false
In the long run, price elasticities of demand are usually
A. greater than they are in the short run because consumers have time to adjust. B. the same as they are in the short run because tastes don't change. C. less than they are in the short run because prices rise over time. D. less than they are in the short run because real prices fall over time.
Assume a consumer has a horizontal demand curve for a product. His consumer surplus from buying the product
A) is maximized. B) can't be calculated. C) equals zero. D) Need more information.
In response to news reports that drinking a glass of red wine each day can reduce an individual's risk of heart disease, there will most likely be a(n)
A. increase in the demand for red wine. B. increase in the supply of red wine. C. decrease in the supply of red wine. D. increase in the quantity demanded of red wine.