The consumption function will shift upward if real asset and money holdings:
A. increase, if people expect prices to increase, if interest rates decrease, and if taxes decrease.
B. increase, if people expect prices to increase, if interest rates increase, and if taxes increase.
C. increase, if people expect prices to increase, if interest rates increase, and if taxes decrease.
D. decrease, if people expect prices to decrease, if interest rates decrease, and if taxes decrease.
Answer: A
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To determine horizontal equity, two taxpayers with
A. The same gross incomes should be compared for their effective tax rates. B. The same taxable incomes should be compared for their effective tax rates. C. Different gross incomes should be compared for their effective tax rates. D. Different taxable incomes should be compared for their nominal tax rates.
Which of the following statements is true?
A) Only government policymakers can improve decision making by using economic principles. B) Only government policymakers and business managers can improve decision making by using economic principles. C) Only business managers and individuals can improve decision making by using economic principles. D) Government policymakers, business managers, and individuals can all improve decision making by using economic principles.
Which of the following would NOT be a barrier to entry for a particular market?
A) ownership of a patent B) low cost of obtaining initial capital C) the presence of economies of scale D) government regulation
A perfectly inelastic demand:
A. means people will quickly change the quantity they purchase when price changes. B. means people will not respond to any change in price. C. is demonstrated by a perfectly horizontal demand curve. D. has an absolute value greater than 1.