If the purpose of a tax is to raise revenue, it would be best for government to place the tax on which of the following goods?
a. a non-essential good, such as holiday travel
b. a good whose demand curve is highly elastic
c. a good that has several close substitutes
d. a good whose demand curve is highly inelastic
e. a good whose demand curve is unit elastic
D
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The current account deficits incurred by the United States in the 1990s and early 2000s were caused, in the opinion of many economists, by
A) federal budget deficits. B) a sharp decline in private saving. C) "flight to quality" as foreign investors favored U.S. investments. D) Both B and C are correct.
Which of the following is the source of funds for bank loans?
A) marketable securities B) required reserves C) excess reserves D) bank capital
Suppose China can produce 200 TVs or 200 DVD players. South Korea can produce either 100 TVs or 200 DVD players. In terms of TV production, we can conclude that
A. China has an absolute advantage in TV production. B. China has a comparative advantage in TV production. C. South Korea has an absolute advantage in TV production. D. South Korea has a comparative advantage in TV production.
Disposable income is not:
A. the amount consumers have to spend on goods and services. B. income before tax. C. what consumers base their buying decisions on. D. total income minus taxes.