A tax is progressive if it raises a greater fraction of total tax revenue every year
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose that when the price per ream of recycled printer paper rises from $4 to $4.50, the quantity demanded falls from 800 to 600 reams per day
Using the midpoint formula, what is the price elasticity of demand (in absolute value) over this range? A) 0.003 B) 0.41 C) 2.43 D) 4
Which of the following would cause a change in supply, as opposed to a change in quantity supplied, in the market for used homes?
A) A decrease in the price of rental housing. B) A decrease in the mortgage rates. C) An increase in the incomes of home buyers. D) An increase in the number of buyers in the market for used homes.
As price increases, demand typically
a. becomes more elastic b. becomes less elastic c. does not change d. elasticity does not change
Chapter 1 entitled "Economics: The Study of Opportunity Cost" makes the point that we
A. do not face tradeoffs because we have limited resources. B. can avoid tradeoffs if we simply make the right decisions. C. face tradeoffs because we have limited resources. D. can produce all we want of everything we want if we just work harder.