Why do convex indifference curve have a negative slope?
A) because to keep utility constant, a consumer must get more of one good if she is to give up some of the other
B) because scarcity implies that it is not possible to consume more of one good without giving up some of the other
C) because consumers take market prices as given
D) because consumers face a budget constraint
A
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If a single person has a standard deduction of $6,300, itemized deductions of $3,650, and a personal exemption of $4,000, then the first ________ of income is federal income tax free.
A. $13,950 B. $9,950 C. $10,300 D. $7,650
A tax imposed on buyers raises the price of the good more than would the same tax if it was imposed on sellers
Indicate whether the statement is true or false
An increase in exports decreases aggregate demand
Indicate whether the statement is true or false
When attempting to determine if a sales tax is regressive or not, it is important to consider _____
a. bequests b. that a general sales tax is a consumption tax c. that people pay income taxes d. that individual's incomes change over their lifetime