Due to automatic stabilizers, when the nation's total income rises, government transfer payments
A. and tax revenues increase.
B. decrease and tax revenues increase.
C. increase and tax revenues decrease.
D. and tax revenues decrease.
Answer: B
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Answer the following statement(s) true (T) or false (F)
1. A risk-averse individual chooses to never place a bet. 2. Firms are more likely to exhibit risk-neutral behavior than are individuals. 3. Both ex ante and ex post preferences depend solely on the individual's tastes. 4. When a gamble is repeated many times, the average outcome is the expected value. 5. A risk-free basket has only one possible outcome.
Which of the following is collected only by local and state governments?
A) Excise tax B) Personal income tax C) Toll taxes D) Payroll tax
The additional shifts in aggregate demand that result when there is an increase in government spending is known as the _____
Fill in the blank(s) with correct word
Figure 18-2
Figure 18-2 shows the widget market before and after an excise tax is imposed. The revenue collected by the tax is ____.
A. $8,000 B. $50,000 C. $100,000 D. $150,000