If the price of a product increases from $10 to $12 and the quantity demanded decreases from 40 to 30, then according to the total-revenue test, the product is price elastic in this price range.
Answer the following statement true (T) or false (F)
True
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Which of the following statements about crowding out is false?
a. It is not caused by a budget surplus. b. It is caused by a budget deficit. c. It can completely offset the multiplier. d. It affects interest rates and not economic growth.
Which of the following statements is correct?
a. Vertical equity is the idea that taxpayers with similar abilities to pay taxes should pay the same amount. b. Horizontal equity is the idea that taxes should be levied on a person according to how well that person can shoulder the burden. c. A regressive tax would mean that high-income tax payers pay a larger fraction of their income in taxes than would low-income taxpayers. d. A proportional tax would mean that high-income and low-income taxpayers pay the same fraction of income in taxes.