If demand is linear, tax revenue rises at a constant rate as per unit taxes increase.
Answer the following statement true (T) or false (F)
False
Rationale: Linear demand curves give rise to Laffer curves with an inverse U-shape.
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The marginal propensity to consume (MPC) is the
A) fraction of additional income that is spent. B) fraction of additional consumption that is not based on the level of income. C) ratio of consumption to savings. D) ratio of consumption to income.
The labor force participation rate is calculated as the
A) labor force divided by the number of persons employed then multiplied by 100. B) number of persons unemployed divided by the labor force then multiplied by 100. C) labor force divided by the unemployment rate then multiplied by 100. D) labor force divided by the working age population then multiplied by 100.
The Herfindahl-Hirschman index is a measure of
A) the profit margin of an industry. B) market size. C) the degree of collusion among firms in a market. D) the degree of concentration among firms in a market.
Inflation is defined as the sustained increase in relative prices
a. True b. False Indicate whether the statement is true or false