Property taxes are the product of the tax rate (T) and the assessed value (V). The total property tax collected in your city (P) is: P = T•V. If the value of properties rise 4% and if Mayor and City Council reduces the property the tax rate by 2%, what happens to the total amount of property tax collected? [HINT: the percentage rate of change of a product is approximately the sum of the
percentage rates of change.}
a. It rises 6 %.
b. It rises 4 %.
c. It rises 3 %.
d. It rises 2 %
e. If falls 2%.
d
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According to this Application, transformative economic growth, such as that which occurred with the Industrial Revolution, typically requires
A) both participatory and authoritarian political institutions. B) more authoritarian political institutions. C) neither participatory nor authoritarian political institutions. D) more participatory political institutions.
Suppose the price of a tie rises from $45 to $55. Using the midpoint method, what is the percentage change in price?
A) 10 percent B) -10 percent C) 20 percent D) -20 percent E) 100 percent
If demand is price elastic, total revenue is
a. directly related to quantity demanded b. inversely related to quantity demanded c. directly related to price d. directly related to price and inversely related to quantity demanded e. not related to either price or to quantity demanded
If people wished to hold a quantity of money equal to 80% of nominal GDP, the velocity of money would be
A) 1.00. B) 1.25. C) 1.50. D) 1.75.