According to the law of demand, during a given period of time, the quantity of a good demanded
A. Does not change when price changes.
B. Increases as its price falls, ceteris paribus.
C. Increases as its price rises, ceteris paribus.
D. Decreases as its price falls, ceteris paribus.
Answer: B
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Rather than prohibiting a good or service, the government might tax it. Imposing such a tax on a good or service ________ the equilibrium price and ________ the equilibrium quantity
A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases
Stagflation is the simultaneous occurrence of inflation and high unemployment
a. True b. False Indicate whether the statement is true or false
Does inflation always cause workers losses due to decreases in real wages? Why or why not?
The bulk of federal receipts come from
A) property taxes and personal income tax. B) personal income tax and from payroll taxes. C) corporate income taxes and personal income tax. D) personal income tax and property taxes.