An increase in government purchases must always be accompanied by an increase in autonomous net taxes to boost aggregate demand
a. True
b. False
Indicate whether the statement is true or false
False
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The demand for bus service is perfectly elastic at a price of $1.25 a ride. The table above shows the bus company's marginal cost and the marginal social cost of the bus service
If the government levies a tax on bus rides so that the bus company takes into account the marginal social cost, the tax will be ________ a ride. A) $0.75 B) $1.60 C) $1.25 D) $3.25
Profit per unit is the difference between
A) average revenue and average total cost. B) marginal revenue and marginal cost. C) total revenue and total cost. D) average revenue and marginal cost.
In Figure 4.2, at quantities at Q1:
A. price and total revenue are unrelated. B. total revenue is maximized. C. price elasticity equals 1. D. All of these
Explain what can occur to cause an increase in the debt ratio
What will be an ideal response?