Gary buys a house for $200,000 using $10,000 of his own money and gets a mortgage for the remaining $190,000 . If the value of the house increases 7%, what will be the percentage increase in Gary's investment?
a. 25%
b. 7%
c. 14%
d. 70%
e. 140%
E
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The tit-for-tat strategy:
A. is not effective in repeated games. B. is not possible in single-round games. C. makes cooperation unlikely. D. All of these statements are true.
The difference between a fixed tax and a variable tax is that
a. fixed taxes can never be changed, but variable taxes can be changed. b. a change in fixed taxes has no effect on aggregate demand, but a change in variable taxes has an impact. c. a variable tax changes when GDP changes, but a fixed tax does not change with GDP. d. a variable tax can be changed easily, whereas changing fixed taxes requires a constitutional amendment.
With productive efficiency:
a. There is production of that particular mix of goods and services most wanted by society b. The available supplies of factors of production are variable in quantity and quality c. There is production of any particular mix of goods and services in the least costly way d. The state of technology, or methods used to produce output, constantly change
If government officials are mainly interested in generating tax revenue, then they should tax goods for which demand is price elastic.
Answer the following statement true (T) or false (F)