An upward shift in the consumption function, other things being equal, could be caused by households:
a. becoming optimistic about the state of the economy.
b. becoming pessimistic about the state of the economy.
c. expecting future income and wealth to decline.
d. None of these.
a
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Corporate income is taxed twice
Indicate whether the statement is true or false
Suppose a farmer raising beef is making a normal profit. Then, because of a scare about mad cow disease, the demand for beef decreases drastically. What happens to the profits of the beef farmer in the short run and in the long run?
What will be an ideal response?
Refer to the graph shown. Given supply, S0, and demand, D, what tariff would the government have to impose on lumber imported from Canada to reduce imports to 600 tons?
A. $7 a ton B. $2 a ton C. $13 a ton D. $6 a ton
Which statement is true?
A. A vertical demand curve has zero elasticity. B. A horizontal demand curve has zero elasticity. C. Both vertical and horizontal demand curves have zero elasticity. D. Neither vertical nor horizontal demand curves have zero elasticity.