Which of the following statements is true?
A) A change in sales should have more impact on current investment if it is expected to be permanent rather than temporary.
B) On a percentage basis, investment is more volatile than consumption.
C) In terms of dollars, investment and consumption are about equally volatile.
D) all of the above
E) none of the above
D
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According to the CPI basket, the largest item in the households' budgets is
A) apparel. B) education. C) food. D) transportation. E) housing.
Which of the following taxes is based on the ability-to-pay principle?
a. tolls on a bridge b. income taxes c. gasoline excise taxes d. property taxes e. user fees that collect the same amount from each person
A firm that exists as a separate legal being is
a. a sole proprietorship b. a corporation c. a partnership d. likely to be a small, family-run business e. still dependent on its owners in many ways
To understand how poverty, inequality, and discrimination affect the economy, ________ analysis is used, and ________ analysis is used to address whether the government should try to reduce inequality in the name of social justice.
A. positive; objective B. normative; positive C. positive; normative D. subjective; normative