If the price of apples went down by 20 percent, which of the following values of the cross price elasticity for boats would be most reasonable to anticipate?
A) 0.0
B) 2.0
C) -2.0
D) -20
Answer: A
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Which of the following is the BEST example of a public good?
A) public transportation by bus B) clean air C) community swimming pools for which the user must pay a fee D) postal services
Which statement best describes the current account balance in the short run?
A) Monetary expansion lowers the current account balance. B) Monetary expansion keeps the current account balance the same. C) Fiscal expansion increases the current account balance. D) Fiscal expansion keeps the current account balance the same. E) Monetary expansion increases the current account balance.
The principle of vertical equity is satisfied when _____
a. individuals with a greater ability to pay have higher taxes than individuals with a lower ability to pay b. individuals receiving higher benefits from a government program pay higher taxes than those receiving lower benefits c. taxes increase as family size increases d. taxes on higher income individuals are more efficient than the taxes on lower income individuals
The average tax rate is
A. the ratio of additional taxes to an additional dollar of income. B. the ratio of taxes to income. C. the ratio of taxes to GDP. D. the ratio of income to direct taxes.