When the government cuts the income tax rate, the supply of labor ________, the demand for labor ________, and the equilibrium level of employment ________
A) increases; increases; increases
B) increases; decreases; increases
C) increases; does not change; increases
D) decreases; increases; increases
E) increases; does not change; decreases
C
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If the Consumer Price Index last year was 110 and 115 this year, the inflation rate is approximately
A) 4.5 percent. B) 5.0 percent. C) 10.0 percent. D) 15.0 percent.
Which of the following steps does an economist take when studying the economy?
a. devise theories b. collect data c. analyze data d. All of the above are correct.
Citizens expect the government to provide various goods and services making taxes
a. inefficient. b. equitable. c. inevitable. d. intolerable.
Suppose the market demand for good X is given by QXd = 20 - 2PX. If the equilibrium price of X is $5 per unit then consumers' expenditure on X is
A. $50. B. $25. C. $5. D. cannot be determined from the information contained in the question.