A permanent decrease in taxes leads to
A) a small increase in current consumption.
B) a large increase in current consumption.
C) a small decrease in future consumption.
D) a large decrease in future consumption.
B
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It's as simple as this: Bankers hope to make profit by
a. holding people's money at low interest rates and lending it out at higher interest rates b. holding people's money at high interest rates and lending it out at lower interest rates c. charging for bank services such as check clearing and ATM services d. keeping excess reserves in case of a bank run e. charging people to use demand deposit accounts
In surveying their alumni, State U's economics department discovered that ramen noodle consumption declined once students graduated and found jobs. One conclusion the survey team might draw from this result is that:
A. ramen noodles are an inferior good. B. college graduates have a high reservation price for ramen noodles. C. there is excess demand for ramen noodles. D. the equilibrium price for ramen noodles is too high.
Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below.Mega Corp: TC = 5,000 + 100QBig Inc: TC = 4,000 + 200QIf each firm produces 10 units, Mega Corp's total cost will be ________, and Big Inc's total cost will be ________.
A. $15,000; $14,200 B. $5,000; $4,000 C. $5,100; $4,200 D. $6,000; $6,000
An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline would shift the supply curve
A. up by less than $1.00. B. down by $1.00. C. up by $1.00. D. down by more than $1.00.