When a tax is levied on a good,
a. government revenues exceed the loss in total welfare.
b. there is a decrease in the quantity of the good bought and sold in the market.
c. the price that sellers receive exceeds the price that buyers pay.
d. All of the above are correct.
b
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Supply-side economists argue that changes in tax rates cause changes in
A) labor supply. B) the full-employment level of output. C) saving. D) all of the above.
If a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2, then the bank can lend: a. $4,000
b. $16,000. c. no more than $4,800. d. no less than $3,000. e. $1,000.
You wear either shorts or sweatpants every day. You notice that sweatpants have gone on sale, so your demand for
a. sweatpants will increase. b. sweatpants will decrease. c. shorts will increase. d. shorts will decrease.
Which of the following best describes the relationship between economic freedom and the growth rate of real per capita Gross Domestic Product (GDP)?
What will be an ideal response?