Changes in the price level affect household wealth more than household income
a. True
b. False
Indicate whether the statement is true or false
True
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From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the marginal
A. benefit of more insurance coverage is greater than the total benefit. B. cost of more insurance coverage is negative. C. cost of more insurance coverage is equal to the payment for the extra coverage. D. cost of more insurance coverage is less than the marginal benefit.
If aggregate planned expenditure equals GDP, then
A) firms' inventories exceed planned inventories. B) firms' inventories equal planned inventories. C) firms' inventories are less than planned inventories. D) firms' actual investment has no relationship to their planned investment. E) firms do not have any inventories.
The height of the demand curve at any quantity indicates
a. total expenditure on the good or service b. total revenue to the seller of the good or service c. whether the price is fair or not d. how much that particular unit is worth to the person who buys it e. how much the person who buys that unit actually pays for it
The property tax may be regressive even though wealthy people own much more taxable property than do poor people. This possibility arises because:
A. marginal and average tax rates on property tend to converge. B. wealthy people can evade property taxes while poor people cannot. C. property taxes on rental property and business property are shifted. D. statutory property tax rates decline as the value of property rises.