Suppose the market for potatoes can be expressed as follows: Supply: QS = -20 + 10p Demand: QD = 400 – 20p If the government sets a maximum price of $10 per unit, what will be the quantity demanded and quantity supplied? ANSWER With a maximum price of $10, suppliers will sell only 80 […]
Date: September 9th, 2020
The relationship between education and productivity is easily quantified because causation clearly flows from education to increased productivity. a. True b. False ANSWER b
Date: September 9th, 2020
Representative democracy makes no sense from an economic point of view. a. True b. False ANSWER b
Date: September 9th, 2020
An ad valorem tax on suppliers causes the _____ to shift by a constant _____. a. supply curve; percentage b. supply curve; amount c. demand curve; percentage d. demand curve; amount ANSWER a
Date: September 9th, 2020
The above figure shows a consumer’s indifference curves for soda and all other goods. Assuming a budget of $100, derive the consumer’s demand for soda for prices of $4 and $10 per case of soda. Estimate the price elasticity of demand for soda. What will be an ideal response? ANSWER At a price of […]
Date: September 9th, 2020
An ad valorem tax on demanders causes the _____ to shift by a constant _____. a. supply curve; percentage b. supply curve; amount c. demand curve; percentage d. demand curve; amount ANSWER c
Date: September 9th, 2020
If a college graduate makes $10,000 more than a high school graduate, we can safely say that the education imparted in college adds $10,000 to an individual’s income. a. True b. False ANSWER b
Date: September 9th, 2020
When collective agreement on a policy is 100 percent of all voters, external costs are minimized. a. True b. False ANSWER a
Date: September 9th, 2020
Which of the following is not an excise tax? a. A tax on cigarettes. b. A tax on beer. c. A tax on corporations. d. A tax on airline tickets. ANSWER c
Date: September 9th, 2020
A tax of 10 percent of the ticket price of an airplane ticket is _____. a. a unit tax b. an ad valorem tax c. an income tax d. a value-added tax ANSWER b
Date: September 9th, 2020
