The Laffer curve shows the relationship between tax:
a. revenue and tax rates.
b. revenue and take-home pay.
c. revenue and government spending.
d. rates and take-home pay.
e. rates and government spending.
a
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Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket falls from $25 to $10
A) consumer surplus decreases from $24 to $12. B) consumer surplus increases from $0 to $31. C) only three tickets will be sold. D) everyone will buy a ticket.
Human capital includes investments in education and skills.
Answer the following statement true (T) or false (F)
An effective price ceiling usually generates
A. higher nominal prices. B. happy sellers and dissatisfied buyers. C. the use of nonprice rationing devices. D. fire sales as firms try to unload their excess inventories.
If a restaurant runs a special and sells a lobster dinner for $4.50, Amy buys one lobster dinner a week. If lobster dinners are not on special and the price is $16.00, Amy buys zero lobster dinners per week. Which of the following is true?
A. Amy's marginal utility from a lobster dinner is greater than $16.00. B. Amy's demand for lobster is inelastic. C. Amy's marginal utility from a lobster dinner is less than $4.50. D. The value of Amy's marginal utility from a lobster dinner is at least $4.50 and less than $16.00.