Tax multiplier:
What will be an ideal response?
the impact of a change in a lump sum tax on economic equilibrium, expressed mathematically as ?Y/?T(mult) × (mpc)
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Which of the following is most consistent with economizing behavior?
a. If you get the same satisfaction from a hamburger and a fish sandwich, you should purchase the one that costs the most. b. Even if you know how to paint, hiring someone to do the job is consistent with economizing behavior, if your opportunity cost is high enough. c. If the government provides a good free to citizens, the opportunity cost of the good is zero. d. If you get the same satisfaction from going to the opera and going to an art museum, it makes no difference which you choose.
If marginal revenue exceeds marginal cost, a profit-maximizing monopolist will
a. raise price and decrease output. b. lower price and increase output. c. reduce both output and price. d. hold output constant and raise price.
In the 1990s, inflation in the United States was
a. very close to zero. b. about 3 percent per year. c. about 6 percent per year. d. commonly referred to as "public enemy number one.".
Which of the following statements about concentration ratios is correct?
A) A high concentration ratio indicates that the industry is a monopoly. B) A high concentration ratio indicates that the industry is monopolistically competitive. C) A high concentration ratio suggests that the industry is characterized by strategic independence. D) A high concentration ratio suggests that the industry is characterized by strategic dependence.