If taxes and government expenses did not vary with income, then income would
A. be less stable.
B. be more stable.
C. not change.
D. be closer to potential income.
Answer: A
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Refer to the graph shown. Which point has an elasticity less than 1?
A. A B. B C. C D. D
Why do societies need rationing devices?
A) Because people have too many needs and not enough wants. B) Because price exists. C) Because scarcity exists. D) Because people have opportunity costs.
You have noticed that there is a persistent shortage of teachers in an inner-city school district in your state. Based on this observation, you suspect that:
A. the demand for teachers in the inner-city school district is too low. B. the wage for teachers in that district is higher than the wage in other districts. C. there is an excess supply of teachers in other districts. D. the wage for teachers in that district is lower than the equilibrium wage.
If taxes fall and foreign income falls, what will happen to output, ceteris paribus?
A) It will rise. B) It will stay the same. C) It will fall. D) It is uncertain what will happen.