Refer to the information provided in Figure 33.3 below to answer the question(s) that follow.
Figure 33.3Refer to Figure 33.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. If shoes are a normal good and income in this country falls, then we would expect
A. the number of pairs of shoes exported from this country to increase.
B. the number of pairs of shoes imported into this country to increase.
C. the number of pairs of shoes exported from this country to decrease.
D. the number of pairs of shoes imported into this country to decrease.
Answer: D
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If the economy produces 12 capital goods and 40 consumer goods,
As economists use the term, capital means
a. such things as machinery and equipment. b. such things as money and credit. c. the profits that come from hiring and using labor and natural resources. d. All of these.
Refer to Figure 21-4. Which of the following is consistent with the graph depicted?
A) an increase in household income B) an increase in tax revenues collected by the government C) an increase in transfer payments to households D) an increase in the proportion of income after net taxes used for consumption
The federal income tax is progressive because the tax rates increase at higher income levels
a. True b. False Indicate whether the statement is true or false