A tax rate increase necessarily leads to an increase in tax revenue for the government
Indicate whether the statement is true or false
False
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What is the shape of the long-run aggregate supply curve? Why?
What will be an ideal response?
If a consumer is choosing the optimal combinations of two goods X and Y, and then the price of good Y decreases, this causes
a. MU/P of good X to increase, so the consumer now should buy more X to find a new optimal combination b. demand for good X to increase c. MU/P of good Y to increase, so the consumer now should buy more Y to find a new optimal combination d. MU/P of good Y to decrease, so the consumer now should buy more Y to find a new optimal combination e. the demand for good X and good Y will not change because utility does not depend on price
Joel buys ten disks for his new personal computer, and he places a $60 value on those disks, even though he only paid $2 per disk. What is his consumer surplus?
a. $48 b. $30 c. $40 d. $20 e. $4 from each floppy disk
If a good is normal, then an increase in income will result in a(n)
a. increase in the demand for the good. b. decrease in the demand for the good. c. movement down and to the right along the demand curve for the good. d. movement up and to the left along the demand curve for the good.