If the (average) tax rate falls by 10% and as a result the tax base rises by 8%, then tax revenues will
A) rise.
B) decline.
C) remain unchanged.
D) There is not enough information given to answer this question.
B
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The figure above shows the market for coffee. Coffee is a normal good. If consumers' incomes fall, the efficient quantity of coffee will ________ and the producer surplus will ________
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
In the classical model, a basic theoretical feature of self-regulating markets was that
a. unsold inventory and labor unemployment would cause prices and wages to increase. b. lower wages and prices would eliminate unemployment and unsold inventory. c. unsold inventory would never occur. d. an increase in planned saving would cause an increase in the interest rate and a decrease in investment.
The consumer confidence index can be defined as:
a. an economic index that measures how consumers feel about their government. b. an economic index that measures how confident companies are about keeping their current consumers. c. an economic index that measures household expectations about the economy. d. an economic index that measures how investors feel about their investments in the stock market. e. an economic index used to measure consumers' confidence on a particular brand.
Black-market prices are below equilibrium prices because sellers want to sell large quantities
a. True b. False Indicate whether the statement is true or false