When consumption and saving are graphed relative to real GDP, an increase in personal taxes will shift:
A. both the consumption and saving schedules downward.
B. both the consumption and saving schedules upward.
C. the consumption schedule upward and the saving schedule downward.
D. the consumption schedule downward and the saving schedule upward.
A. both the consumption and saving schedules downward.
You might also like to view...
Screening occurs when
a. an informed party acts to reveal his private information. b. an informed party acts to conceal his private information. c. an uninformed party acts to induce the informed party to reveal private information. d. an uninformed party acts on its limited information.
Figure 4-7
Refer to . The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied. How much revenue does the $.60-per-gallon tax generate for the government?
a.
$40 billion
b.
$48 billion
c.
$50 billion
d.
$60 billion
A farmer buys seed for 15 cents that is used to grow wheat. The farmer sells the wheat to the miller for 30 cents, who makes flour. The flour is sold to the baker for 60 cents and the baker makes bread, which is sold to the grocer for 90 cents. The grocer sells the bread for $1.40. What is the value added for the grocer?
A. 15 cents B. $1.40 C. 50 cents D. 35 cents
If opportunity costs are ________, the production possibilities frontier would be graphed as a negatively sloped straight line
A) decreasing B) increasing C) negative D) constant