As one moves down along a linear demand curve (i.e., from high price, low quantity pairs to low price, high quantity pairs), demand:
A. increases.
B. becomes more elastic.
C. becomes less elastic.
D. decreases.
Answer: C
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When an income tax has a progressive rate structure, _____
a. average tax rates are higher than marginal tax rates b. marginal tax rates are higher than average tax rates c. marginal tax rates are constant across all income ranges d. average and marginal tax rates are equal across all income ranges
Suppose that a market has the following supply and demand equations:
Demand: QD = 380 - 10p Supply: QS = 80 + 5p If the government imposes a specific tax of ? on suppliers, what will be the price buyers pay and sellers receive, quantity, and government revenue from the tax (as functions of ?). What tax level maximizes the revenue the government collects from the tax?
What is the formula for the aggregate demand curve?
a. S + T + I + X – M b. C + T + G + X – M c. C + I + G + X – M d. S + I + G + X – M
Charles Murray points out that
A. despite substantial increases in the money that the federal government spent on antipoverty programs between 1968 and 1980, the poverty rate remained exactly the same. B. although federal spending on antipoverty programs fell substantially between 1968 and 1980, the poverty rate remained exactly the same. C. the only way to substantially reduce the welfare rolls is to enroll all the poor in job training programs that lead to well-paying jobs. D. despite the rising number of poor people in recent years, the federal antipoverty programs have been successful.