Prior to September 11, 2001, defense spending had ________ in inflation adjusted terms over the past 10 years and was at its ________ by that measure since WWII.

The government of Bassaland is looking for new revenue sources. It is considering imposing an excise tax on two goods: palm wine and diapers

If the price elasticity of demand for the goods are -0.47 and -1.89 respectively, which good should it tax if the goal is to raise revenue? If the government wants to tax only one good, which good should it tax if the goal is to discourage consumption? Explain your answer.

If Fred's marginal utility of pizza equals 10 and his marginal utility of salad equals 2, then we know that

A) his indifference curves are convex. B) his indifference curves are L-shaped. C) his indifference curves are linear. D) his indifference curves are downward sloping.