Figure 4-11 Refer to. On the Laffer curve shown, which of the following is true?
a. Tax revenue would increase if marginal tax rates were lowered from point C.
b. Tax revenue would decrease if marginal tax rates were lowered from point A.
c. Tax revenues are maximized at a tax rate corresponding to point B.
d. All of the above are true.
Ans: d. All of the above are true.
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An increase in the monetary base that goes into ________ is not multiplied, while an increase that goes into ________ is multiplied
A) deposits; currency B) excess reserves; currency C) currency; excess reserves D) currency; deposits
Using supply and demand analysis, customers will stand in line for gasoline when a price ceiling is in force, even if the price ceiling is at a level higher than the equilibrium price
a. True b. False Indicate whether the statement is true or false
Which of the following best explains the source of consumer surplus for Good A? a. Many consumers pay prices that are greater than the equilibrium price of Good A
b. Many consumers would be willing to pay more than the market price for some units of Good A. c. Many consumers think the market price of Good A is greater than its cost. d. Many consumers of Good A place a value on it that is less than the market price.
The largest source of unemployment is
A) re-entrants to the labour force. B) job losers. C) involuntary part-time workers. D) job leavers. E) entrants to the labour force.