The income effect of a price change is the change in consumption that results from the movement to a new indifference curve
a. True
b. False
Indicate whether the statement is true or false
True
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Scholarly estimates of the impact of immigration on the average American wage rate are in the range of:
A. -3% to +2% B. -3% to -2% C. -1% to +3% D. -5% to +1%
The government has a budget surplus if
A) there is no national debt. B) tax revenue is greater than outlays. C) government outlays are greater than tax revenue. D) the budget is balanced. E) a fiscal stimulus is being used to combat a recession.
If the tax multiplier is -1.5 and a $200 billion tax increase is implemented, what is the change in GDP, holding everything else constant? (Assume the price level stays constant.)
A) a $133.33 billion increase in GDP B) a $133.33 billion decrease in GDP C) a $30 billion increase in GDP D) a $300 billion decrease in GDP E) a $300 billion increase in GDP
An externality that is not fully paid by the individual using an automobile is
A) insurance for the vehicle. B) gasoline for the vehicle. C) air pollution from the vehicle. D) operation of the vehicle.