How would the elimination of a sales tax affect the market for a product that had been subject to the tax?
A) The equilibrium price for the product would fall by less than the amount of the tax.
B) The reduction in government revenue from the tax would be made up by an increase in property taxes.
C) The supply of the product would become more elastic.
D) The demand for the product would rise and the equilibrium price would fall by the amount of the tax.
A
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Refer to Figure 29-1. Europe experiences an economic boom. Assuming all else remains constant, this would be represented as a movement from
A) D to A. B) C to B. C) B to A. D) D to C.
Suppose y = Ak1/3, the capital-labor ratio is $30,000 per worker, the level of total factor productivity is 400, 50% of the population works, and there are 50 million workers. Real GDP per worker is
A) $9,861.69. B) $12,424.66. C) $15,530.82. D) $18,067.92.