With trade, the slope of the Consumption Possibilities Curve (CPC) is equal to
A) the world price of the good on the horizontal axis.
B) the world price of the good on the vertical axis.
C) the opportunity cost of the good on the horizontal axis.
D) the opportunity cost of the good on the vertical axis.
A
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"Information problematic" borrowers must usually go the __________ finance route and issue __________ securities
A) direct; traded B) direct; nontraded C) indirect; traded D) indirect; nontraded
If at full employment the government wants to increase its spending by $100 billion without increasing inflation in the short run, it must do which of the following?
A) Raise taxes by more than $100 billion B) Raise taxes by $100 billion C) Raise taxes by less than $100 billion D) Lower taxes by $100 billion E) Lower taxes by less than $100 billion
An increase in the tax rate can cause total tax collections to fall if:
A. the tax is progressive. B. higher taxes cause individuals to substitute leisure for labor. C. the tax is regressive. D. higher taxes cause individuals to substitute labor for leisure.
Use the figure below to answer the following question.
If a price floor in this market is set at P2, then
A. government revenue equals area d. B. government revenue equals area b. C. government does not raise revenue. D. government revenue equals the distance between P1 and P2.