The theory by which people optimally use all available information when forecasting the future is known as
a. rational expectations.
b. perfect expectations.
c. credible expectations.
d. predictive expectations.
a
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When a unit tax is placed on demanders ____
a. it will be paid entirely by demanders if the demand curve is elastic b. it will have the same effect as a similar unit tax placed on suppliers c. they will pay a larger share than if it was initially placed on suppliers d. they will pay a smaller share than if it was initially placed on suppliers
Income elasticity has a range of
A) greater than or less than one. B) greater than or less than zero. C) greater than or less than negative one. D) less than zero but greater than one.
A 5 percent tax applied to a foreign good or service is a(n)
a. unit tax b. foreign tax c. progressive tax d. customs duty e. sales tax
Which of the following statements is false?
A) Money is the only good that can (or does) serve as a store of value. B) In a barter economy, there is no good that serves as a unit of account. C) There are higher transaction costs of making exchanges in a barter economy than in a money economy. D) Money functions as a medium of exchange, unit of account, and store of value.