A demand relationship in which a given percentage change in price will result in a less than proportionate percentage change in quantity demanded is
A) elastic.
B) unit-elastic.
C) inelastic.
D) consistent with zero elasticity.
C
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In the United States, the top 1% of income earners face an average federal tax rate of ________ and contribute ________ of all federal tax dollars received
A) 73%; 49.5% B) 20%; 5% C) 24%; 9.1% D) 29.4%; 24.2%
Which of the following statements is TRUE if your money income stays the same but the price of one good that you are buying goes up?
A. You will have to reduce the quantities you purchase of all goods. B. Your nominal income has been decreased. C. Your real income has increased. D. Your effective purchasing power falls.
Which of the following represents the most contractionary fiscal policy?
A. A $30 billion tax cut. B. A $30 billion increase in government spending. C. A $30 billion tax increase. D. A $30 billion decrease in government spending.
Economists use the term ________ to refer to the creation of new capital.
A. investment B. finance C. entrepreneurship D. depreciation