In the capital market, households ________ savings and firms ________ funds.
A. supply; supply
B. demand; demand
C. demand; supply
D. supply; demand
Answer: D
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Suppose Carmen buys ramen noodles. To determine whether ramen noodles are a normal or inferior good for her, we must observe how Carmen
A) responds to a change in the price of a substitute for ramen noodles. B) responds to a change in the price of a complement for ramen noodles. C) responds to a change in the price of ramen noodles itself. D) responds to a change in her income. E) responds to all of the above.
If the average product of labor curve is rising,
i. the average variable cost curve is falling. ii. the marginal cost curve is definitely falling. iii. the marginal product curve has reached its maximum. A) i and iii B) i only C) ii and iii D) i, ii, and iii E) ii only
Referring to Table 4.2, Box E should be filled with 
A. $3. B. $0. C. $30. D. $20.
The property tax may be regressive even though wealthy people own much more taxable property than do poor people. This possibility arises because:
A. marginal and average tax rates on property tend to converge. B. wealthy people can evade property taxes while poor people cannot. C. property taxes on rental property and business property are shifted. D. statutory property tax rates decline as the value of property rises.