The Laffer curve is
A. never referred to in modern day discussions of public finance.
B. a curve that describes the relationship between tax rates and tax revenues.
C. used to describe the relationship between consumption and hours worked.
D. a curve that refers to the endowment of time.
B. a curve that describes the relationship between tax rates and tax revenues.
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If there is currently an inflationary gap: a. The price level will tend to rise. b. Real output will tend to rise
c. Both a. and b. will occur. d. None of the above will occur.
A decrease in the number of sellers in the market causes a. the supply curve to shift to the left
b. the supply curve to shift to the right. c. a movement up and to the right along a stationary supply curve. d. a movement downward and to the left along a stationary supply curve.
In economics, a free rider is the term used for a person who
a. receives the benefit of a good without contributing to its costs of production. b. purchases an item during a "buy one, get one free" sale. c. lives in a town in which the city provides free bus service. d. pays for exactly what they receive.
The controller of a monopoly sets the price of goods by charging _____.
(A) As much as possible, regardless of the amount sold. (B) Less than the company would charge if it did not have a monopoly. (C) The price at which the profit is maximized. (D) Only a small amount over cost.