The ________ the marginal tax rate, the ________ the effect on aggregate expenditure from a change in investment
A) smaller; smaller
B) smaller; larger
C) larger; smaller
D) larger; larger
E) More information about the effect on GDP is needed to answer the question.
C
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An increase in the tax wedge associated with a given economic activity will decrease the level of that activity
Indicate whether the statement is true or false
Sam has $200 a month to spend on either tanning sessions or rounds of golf. Tanning sessions are $20 each, and a round of golf is $50. A point on Sam's budget constraint would be:
A. 20 tanning sessions and 8 rounds of golf. B. 10 tanning sessions and 5 rounds of golf. C. 10 tanning sessions and 4 rounds of golf. D. 10 tanning sessions and 2 rounds of golf.
Specialization and division of labor are made easier by the existence of money
a. True b. False Indicate whether the statement is true or false
An increase in the price of the good measured on the horizontal axis will cause the budget line to:
A. shift outward. B. become steeper. C. become flatter. D. shift inward.