GDP ignores transactions that take place in the underground economy

Indicate whether the statement is true or false


TRUE

Economics

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Suppose there is currently a tax of $50 per ticket on airline tickets. Sellers of airline tickets are required to pay the tax to the government. If the tax is reduced from $50 per ticket to $30 per ticket, then the

a. demand curve will shift upward by $20, and the price paid by buyers will decrease by less than $20. b. demand curve will shift upward by $20, and the price paid by buyers will decrease by $20. c. supply curve will shift downward by $20, and the effective price received by sellers will increase by less than $20. d. supply curve will shift downward by $20, and the effective price received by sellers will increase by $20.

Economics

An adverse supply shock causes inflation to

a. rise and the short-run Phillips curve to shift right. b. rise and the short-run Phillips curve to shift left. c. fall and the short-run Phillips curve to shift right. d. fall and the short-run Phillips curve to shift left.

Economics

When the marginal physical product is falling

A. total costs are falling. B. average fixed costs are rising. C. marginal cost is rising. D. average variable costs are falling.

Economics

A monopoly is characterized by all of the following except

A) there are only a few sellers, each selling a unique product. B) entry barriers are high. C) there are no close substitutes to the firm's product. D) the firm has market power.

Economics