A change in input prices has no impact on the budget line
a. True
b. False
Indicate whether the statement is true or false
False
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Answer the following statement(s) true (T) or false (F)
1. A Pigou tax forces car manufacturers to internalize the cost of pollution. 2. Cap and Trade is so named because the government puts a “cap” on the amount of exports that domestic firms are allowed to “trade” with foreign nations. 3. A Cap and Trade system is more prone to error than a Pigou tax. 4. Pigou taxes are unnecessary in the presence of transaction costs. 5. Pigovian analysis indicates that a subsidy should be awarded when economic activity creates social benefits.
The following are all least squares assumptions with the exception of:
A) The conditional distribution of ui given Xi has a mean of zero. B) The explanatory variable in regression model is normally distributed. C) (Xi, Yi), i = 1,..., n are independently and identically distributed. D) Large outliers are unlikely.
If your income is $40,000 and your income tax liability is $5,000 . your marginal tax rate is
a. 8 percent. b. 12.5 percent. c. 20 percent. d. unknown. We do not have enough information to answer this question.
According to the text, farming today in the U.S. is __________ productive compared to a century ago, resulting in there being __________ farmers today than at the turn of the previous century
A) about as; fewer B) about as; more C) much more; fewer D) much more; more