If the government removes a tax on a good, then the price paid by buyers will
a. increase, and the price received by sellers will increase.
b. increase, and the price received by sellers will decrease.
c. decrease, and the price received by sellers will increase.
d. decrease, and the price received by sellers will decrease.
c
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A university raises annual tuition by 10 percent. No other events have occurred, and the university's revenues have increased. It must be TRUE that
A) the associated change in quantity demanded was smaller than 10 percent. B) the associated change in quantity demanded was equal to 10 percent. C) the associated change in quantity demanded was greater than 10 percent. D) there was no associated change in quantity demanded.
Which of the following stands true for the determinants of growth?
a. The long-run aggregate supply curve is a horizontal line at the potential level of real GDP. b. Land can be combined with labor and capital to produce goods and services. c. The labor force typically grows more rapidly in industrial countries than in developing countries because birth rates are higher in industrial countries. d. The ability of a country to invest in capital goods is tied to its ability to spend. e. The size of the labor force is a function of the size of the youth in the population and the percentage of that population that is in the labor force.