Economists believe that people's wants are
a. limited by their incomes
b. insatiable
c. scarce
d. mostly irrational
e. mostly psychological
B
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A buyer is willing to buy 10 units of a good at a maximum price of $10 per unit. The reservation value of the buyer in this case is:
A) $1. B) $10. C) $20. D) $100.
The Laffer curve shows the relationship between tax
a. revenue and tax rates b. revenue and take-home pay c. revenue and government spending d. rates and take-home pay e. rates and government spending
In the mid-1990s, real interest rates fell in the United States. This was the result of budget deficit
a. increases and tighter monetary policy. b. increases and looser monetary policy. c. reductions and looser monetary policy. d. reductions and tighter monetary policy.
Suppose your university decides to increase parking fees in order to deal with the shortage of parking spaces. Nevertheless, the president of your student body convinces the university to pay back the amount spent on higher parking fees to students in the form of a rebate at the end of the school year. Therefore, the increase in parking fees will
A. not solve the parking shortage. B. will have no effect since it will be offset entirely by the rebate. C. make the parking shortage even worse. D. reduce demand for parking and hence alleviate the parking shortage.