The circular flow model with government included would show that government
A. produces goods and services and sells them in the product market to generate net taxes.
B. obtains revenues in the product market and uses it to cover costs in the resource market.
C. controls economic resources and sells them in the resource market.
D. provides goods and services to businesses and households and pays for them with net taxes.
Answer: D
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Refer to Table 16-2. How many tubes of toothpaste will Neem sell in Middle Fall and at what price?
A) Q = 4 units; P = $5 B) Q = 2 units; P = $7 C) Q = 3 units; P = $6 D) Q = 5 units; P = $4
A microeconomist — as opposed to a macroeconomist — might study
a. the effect of a national healthcare program on the nation's unemployment rate. b. the effect of new regulations on production in the pulp and paper industry. c. the effect of changes in interest rates on gross domestic product. d. the growth rate of production in the economy.
The principle of horizontal equity is violated if two people who earn the same amount of income actually pay a different amount in taxes.
Answer the following statement true (T) or false (F)
In 1789, the average American paid approximately what percent of income in taxes?
a. 5% b. 15% c. 33% d. 50%