If the government wants to decrease the quantity consumed of cigarettes 20%, what percentage of tax would they have to levy on cigarette consumption?
a. 20%
b. 30%
c. 40%
d. 50%
c
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If everyone in an economy had equal income, the Lorenz curve would be a curve that intersects the line of income equality at the point at which 50 percent of the population earns 50 percent of the income
a. True b. False Indicate whether the statement is true or false
Over the 1980s and 1990s, countries with sound fiscal, monetary, and trade policies and strong rule of law combined with large amounts of aid:
A. grew at 1 percent, indicating the necessity of good policy in conjunction with aid. B. still failed to grow, indicating new methods for furthering development are needed. C. saw GDP shrink by 1 percent, indicating corruption and inefficient use of funds is rampant. D. None of these statements is true.
One result of a decrease in aggregate demand and no change in aggregate supply is
A) a recession. B) an increase in employment levels. C) an economic expansion. D) a rise in the price level.
Economists assume that rational people
A) never use all available information as they act to achieve their goals. B) respond to economic incentives. C) undertake activities that benefit others and hurt themselves. D) only weigh the benefits and costs of the most desirable alternative actions.