A demand curve for a normal good
A. is constructed based on the assumption that income is rising.
B. shows the inverse relationship between price and quantity demanded.
C. slopes upward and to the right.
D. is constructed based on the assumption that an inverse relationship exists between price and income.
Answer: B
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As the price of the U.S. dollar increases in terms of foreign currency,
a. U.S. products become cheaper for foreigners b. foreign goods become cheaper for Americans c. dollars are worth less d. the U.S. demand for foreign exchange increases e. the supply of foreign exchange to U.S. markets decreases
Local governments rely almost exclusively upon sales taxes for revenue
Indicate whether the statement is true or false
A Nash equilibrium is
A. the same as a dominant strategy. B. is the outcome where a player has selected her best strategy, given the choices of the other players. C. occurs in a game when a cartel solution is reached. D. occurs when one player can change her strategy and be better off.
The total cost of taxation to consumers and producers generally exceeds the amount of tax revenue collected by government.
Answer the following statement true (T) or false (F)