The government of Healthyland imposes a tax on sellers of salt. The tax is $0.10 per pound. With no tax, the price of salt is $0.40 per pound. The demand for salt is perfectly inelastic and the elasticity of supply is 1.5
With the tax, the price of salt paid by buyers in Healthyland is A) $0.40 per pound.
B) $0.45 per pound.
C) $0.35 per pound.
D) $0.50 per pound.
D
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The change in consumption divided by the change in disposable income is equal to
A) real GDP. B) household saving. C) the slope of the consumption function. D) aggregate expenditure.
Property rights can be defined and enforced
a. only by the government b. only by ethical norms c. by the government and by ethical norms d. only through constant renegotiation e. by government, by informal social actions, and by ethical norms
National income includes wages and salaries, interest and rent, but not corporate profits
a. True b. False Indicate whether the statement is true or false
________ facilitate the use of money for transactions in the economy.
a. Banks b. Consumers c. Companies d. Governments