According to the Laffer curve, an increase in the tax rate will increase tax revenue
A. if the economy is on the positively sloped section of the curve.
B. if the economy is on the negatively sloped section of the curve.
C. no matter the location of the economy on the curve.
D. if the economy is at the farthest point out on the curve.
Answer: A
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
This table shows price and quantity produced for a single firm in a perfectly competitive market.PriceQuantity$1023$1024$1025$1026Given the information in the table shown, what is the market price?
A. $2 B. $20 C. $260 D. $10
The proposal to place a tax on soda is intended to address what insight about human behavior?
countries create value by recovering and recycling scarce resources such as copper.
a. true b. false