Which of the five goods, A to E, whose price elasticities of demand are shown in the choices below, is the best candidate to tax if the goal is to acquire maximum tax revenue?
a. good A, with price elasticity of 0.90
b. good B, with price elasticity of 3.40
c. good C, with price elasticity of 1.25
d. good D, with price elasticity of 0.50
e. good E, with price elasticity of 1.00
D
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The supply of loanable funds comes from:
A. savings. B. investment. C. borrowers. D. taxes.
The inflation rate
a. explains how prices are reacting to economic policies b. indicates the level of prices charged by all firms in the economy c. measures the annual percent increase in the average level of prices d. measures how fast wages and incomes are rising e. determines the prices that firms will offer to customers
In a particular country in 2008, the average worker had to work 40 hours to produce 100 units of output. In that same country in 2018, the average worker needed to work 35 hours to produce 94.5 units of output. In that country, the productivity of the average worker
a. increased by 2 percent between 2008 and 2018. b. increased by 8 percent between 2008 and 2018. c. remained unchanged between 2008 and 2018. d. decreased by 2 percent between 2008 and 2018.
The market for immediately available reserve balances at the Federal Reserve is known as the:
A. money market. B. long-term bond market. C. short-term bond market. D. federal funds market.