According to the demand pull theory, which is responsible for inflation?
a. producers raise prices to meet existing demand
b. the economy is in a wage price spiral
c. too much money is in circulation
d. Demand for goods and services exceeds existing supply
Ans: d. Demand for goods and services exceeds existing supply
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Britain taxed windows from 1696 until 1851 . Under the 1747-57 tax rates, you would pay no tax if your home had 0 – 9 windows but if your home had 10 – 14 windows you would pay a tax of 6 pence per window for every window in your home
a. In what way is the window tax similar to the U.S. income tax? b. In what way is the window tax different from the U.S. income tax? c. Do you think from 1747–1757 the number of new homes with 9 or fewer windows increased from the pre-1747 days? Explain.
Households ________ factors of production and ________ goods and services
A) demand; supply B) demand; demand C) supply; supply D) supply; demand