When a tax is placed on a good
a. the price paid by buyers rises, and the price received by sellers rises.
b. the price paid by buyers rises, and the price received by sellers falls.
c. the price paid by buyers falls, and the price received by sellers rises.
d. the price paid by buyers falls, and the price received by sellers falls.
b
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Suppose in an economy, investment = $40, saving = $50, government spending+export = $100 and taxes+imports = $110 . Then for this economy, total leakages exceed total injections by:
a. $30. b. $25. c. $10. d. $45. e. $20.
Physical and human capital investments are
a. different in that the opportunity for economic profit is present for physical capital but not for human capital investments. b. different in that human capital decisions do not involve future income considerations, while physical capital investments do. c. similar in that nonmonetary considerations play an equally important role in both. d. similar in that both involve forgoing current income (and consumption) in an effort to achieve higher future income (and consumption).
In determining the number of persons who are poor in the U.S. when calculating family income
A. only earnings are counted. B. only earnings are counted, while cash transfers from the government are excluded. C. money income, including cash transfers received from the government, is counted. D. both earnings and the value of medical services, food stamps, and housing received are counted.
The linear probability model always contains heteroskedasticity when the dependent variable is a binary variable unless all of the slope parameters are zero.
Answer the following statement true (T) or false (F)