If the price level increases by 2 percent each year, the inflation rate is increasing
a. True
b. False
Indicate whether the statement is true or false
True
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It may be misleading to call water a necessity because
A) the amount of water a community consumes does not vary with the price people must pay for water. B) the demand for water does not obey the law of demand. C) the demand for water is highly elastic. D) the demand for water is highly inelastic. E) there are many uses of water for which good substitutes exist.
All countries tend to have about the same tariff levels
Indicate whether the statement is true or false
What definition of unemployment would you expect classical economists to use?
A. anyone who is willing to work at the current market wage, but has not yet been able to find employment B. anyone who is actively seeking work C. anyone who is willing to work if the market wage increases D. anyone who is currently not working
Taxpayers would be better off if a tax could just raise revenue without ______
a. altering the relative prices they face b. altering their preferences for a good c. tax shifting d. any income effects