On the Laffer curve, an increase in tax rates causes tax revenue to increase if the starting point is
A. to the right of the top.
B. exactly at the top.
C. to the left of the top.
D. to the farthest point to the right.
C. to the left of the top.
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A buyer is said to be a price taker if she:
A) can bargain over the prices of the goods she consumes. B) can purchase any amount of a good at a fixed price provided she has the money to pay for it. C) always pays less than the market-determined price for the goods she is consuming. D) ignores the prices of related goods and considers only the price of the goods she is purchasing.
The marginal rate of substitution
a. varies along an indifference curve if the curve is bowed inward. b. is constant along an indifference curve if the curve is a straight line. c. is greater when a consumer has more of two goods rather than less of two goods. d. Both a and b are correct.
Stagflation is the simultaneous occurrence of
A) low inflation and high unemployment. B) high inflation and low unemployment. C) low inflation and low unemployment. D) high inflation and high unemployment.
Our net investment income from foreign countries is
A. greater than foreign investor's income from U.S. investments. B. less than foreign investor's income from U.S. investments. C. about the same as foreign investor's income from U.S. investments. D. less than half foreign investor's income from U.S. investments.