How will an increase in the price of coffee affect the market for cocoa, a substitute good?
a. The supply of cocoa will increase, leading to a reduction in the price of cocoa.
b. The supply of cocoa will decrease, leading to an increase in the price of cocoa.
c. The demand for cocoa will increase, leading to an increase in the price of cocoa.
d. The demand for cocoa will decrease, leading to a reduction in the price of cocoa.
C
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In practice, turning horizontal and vertical equity into tax law
a. hasn't been tried. b. has been fairly easy. c. is resisted by nearly all taxpayers. d. has been extremely difficult.
When economists describe "a market," they mean:
a. A hypothetical place where the production of goods and services takes place b. Information networks that allow individuals to keep in touch with each other c. A mechanism which coordinates actions of consumers and producers to establish equilibrium prices and quantities d. A place where stocks and bonds are traded
Savings and investment are equal:
A. at the equilibrium in the market for loanable funds. B. when banks operate according to banking regulations. C. because banks regulate their flow. D. at an interest rate set by the Fed.
Sales taxes are
A) assessed on the prices paid on a large set of goods and services. B) levied on purchases of a particular good or service. C) based on each individual taxpayer's income level. D) collected only by the U.S. government.