The Laffer curve illustrates how taxes in markets with greater elasticities of demand compare to taxes in markets with smaller elasticities of supply
a. True
b. False
Indicate whether the statement is true or false
False
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Economists say that the economy is at "full employment" when the
A) total unemployment rate is zero. B) structural unemployment rate is zero. C) cyclical unemployment rate is zero. D) frictional unemployment rate is zero.
Your college roommate receives a pay raise at her part-time job from $9 to $11 per hour. She used to work 10 hours per week, but now she decides to work 15 hours per week. For this price range, her labor supply curve is
a. vertical. b. horizontal. c. upward sloping. d. backward sloping.
Keynes called the money people hold in order to buy bonds, stocks, or other nonmoney financial assets the:
A. transactions demand for holding money. B. precautionary demand for holding money. C. speculative demand for holding money. D. unit of account demand for holding money.
Economic analysis assumes "purposeful behavior", which means that people will pursue decisions or actions:
A. That will increase their well-being B. Always based on full or complete information C. With minimal consideration for their emotions D. Without any logical faults