The greater the elasticity of demand of a taxed item, the greater the tax revenue received
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following statements is true?
A) A decrease in demand causes equilibrium price to fall; the decrease in price then results in a decrease in quantity supplied. B) If both demand and supply increase, there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. C) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. D) A decrease in demand causes a decrease in equilibrium price; the decrease in price causes supply to decrease.
Distinguish between investment goods and consumption goods. If you buy a car, is it investment or consumption? What if IBM buys a car? Are inventories a consumption or investment good?
What will be an ideal response?
Usury laws carry the potential of hurting
A. borrowers. B. lenders. C. borrowers and lenders. D. government.
In recent years, net interest on the national debt paid by the federal government as a percentage of GDP is equal to approximately:
A. 1 to 3 percent. B. 5 to 9 percent. C. 10 to 14 percent. D. 15 to 19 percent.