A tax on buyers increases the size of a market
a. True
b. False
Indicate whether the statement is true or false
False
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The Federal Reserve System
A) regulates the nation's financial institutions. B) conducts the nation's monetary policy. C) Both answers A and B are correct. D) Neither answer A nor B is correct.
If the MPC is 0.9, then an increase in taxes of $100 can be expected to __________ consumption by the amount of __________
A) increase; $90 B) decrease; $90 C) increase; $100 D) decrease; $100
We are assuming that returns to scale are
A) scalable. B) constant. C) increasing. D) zero.
When the price of a good decreases:
A. the good becomes less expensive relative to other goods and the consumer's purchasing power increases. B. the good becomes less expensive relative to other goods and the consumer's purchasing power decreases. C. the good becomes more expensive relative to other goods and the consumer's purchasing power increases. D. the good becomes more expensive relative to other goods and the consumer's purchasing power decreases.