There are two kinds of changes in net taxes: First, net taxes can change if the government changes its tax or transfer policies. Second, net taxes change automatically as income rises and falls, without any change in policy. The _________ kind of change sets off the multiplier process, while the _________ kind of change occurs during the multiplier process
a. first; first.
b. first; second.
c. second; first.
d. second; second.
e. None of the above.
B
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Long-run elasticity of supply is defined as:
a. percentage change in quantity demanded in the long run divided by percentage change in price. b. percentage change in price divided by percentage change in quantity demanded in the long run. c. percentage change in quantity supplied in the long run divided by percentage change in price. d. percentage change in price divided by percentage change in quantity demanded in the long run.
Which of the following combinations of characteristics best describes a monopolistically competitive firm?
A. Supplies a small share of the market and sells a product that is undifferentiated from other firms in the market. B. Supplies a large share of the market and sells a product that is undifferentiated from other firms in the market. C. Supplies a small share of the market and sells a product that is slightly different than its competitors. D. Supplies a large share of the market and sells a product that is slightly different than its competitors.
Quarterly demand and supply for the Petram Company is given by Qd = 1000 + 0.5M + 0.25A – 100P and Qs = -750 + 100P, where Q is quantity per quarter, P is price, M is income, and A is advertising expenditure. Suppose that A = 1000 and M =20,000, and answer the following questions.
A. What is the equilibrium price and quantity? B. What is the inverse demand?
Which of the following institutions is responsible for supervising the banking system of the United States?
A. The Federal Reserve System B. The Open Market Committee C. The U.S. Treasury D. The Federal Deposit Insurance Corporation