People generally purchase less of a commodity as its price increases. This implies that the relationship between quantity purchased and the price of the commodity must have a
a. slope always equal to one.
b. positive slope.
c. zero slope.
d. negative slope.
d
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In the income-expenditure model, firms stand ready to provide all the output that is demanded
Indicate whether the statement is true or false
It is usually more efficient to tax a large base at a low rate than to tax a small base at a high rate. ?
Answer the following statement true (T) or false (F)
Which of the following is an example of a positive economic statement?
A. The economy's real output increased at about 3 percent last year and the unemployment rate decreased. B. A central bank should not print too much money because inflation could result. C. Congress should stabilize the social security system by raising taxes now. D. The government farm products surplus should be distributed to the needy.
Which of the following is a tax based on the benefits-received principle?
A. A tax on imports that is used to finance job retraining for workers who have lost their jobs because of the competition from imported products. B. A property tax, if the revenue is used to finance public education. C. A tax added to the camping fee at national parks that is used to maintain and upgrade camping facilities at national parks. D. A progressive income tax that is used to finance national defense.