Refer to Figure 9.2. A movement from point a to point d could be caused by a simultaneous Select one: Oa. decrease in taxes; massive crop failure O b. increase in taxes; increase in the price of oil C. decrease in the money supply; decrease in government spending d. increase in government spending; decrease in the price of oil

Refer to Figure 9.2. A movement from point a to point d could be caused by a simultaneous Select one: Oa. decrease in taxes; massive crop failure O b. increase in taxes; increase in the price of oil C. decrease in the money supply; decrease in government spending d. increase in government spending; decrease in the price of oil

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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68. Supply-side economic studies indicate that a. Marginal income tax rates of about 20% start to reduce incentive to work. b. Marginal income tax rates of about 30% start to reduce incentive to work. c. Marginal income tax rates of about 40% start to reduce incentive to work. d. Marginal income tax rates of about 50% start to reduce incentive to work. e. Marginal income tax rates of about 60% start to reduce incentive to work. 69. Suppose that households supply 500 billion hours of labor per year and have a tax elasticity of supply of 0.16. If the tax rate is increased by 19.6% from 20% to 39.6%, use the formula to calculate by how many hours the labor supply will decline. a. The number of labor hours supplied will decline by 28.67 billion. b. The number of labor hours supplied will decline by 1.568 trillion. The number of labor hours supplied will decline by 2.465 trillion. d. The number of labor hours supplied will decline by 3.422 trillion. e. The number of labor hours supplied…
Only questions D & E
A $1-per-gallon tax on the sale of gasoline will raise the price by $1 per gallon if Select one: a. the supply is perfectly inelastic. O b. the demand is unit elastic. the supply is perfectly elastic. O d. the demand is perfectly elastic.
III. Direction: Underline the correct words or phrase Factors affecting Supply a. Price causes (movement along the curve/shift of the supply curve). b. Non-price determinants cause (movement along the curve/shift of the supplycurve).
1.) Suppose the price elasticity of demand for bread is 2.00. If the price of bread falls by 10%, the quantity demanded will increase by: a. 2 percent and total expenditures on bread will rise. b. 2 percent and total expenditures on bread will fall. c. 20 percent and total expenditures on bread will rise. d. 20 percent and total expenditures on bread will fall. e. 20 percent and total expenditures on bread will be unchanged.
If demand and supply change in the same direction, we _____ the direction of change of the equilibrium quantity and we _____ the direction of change of the equilibrium price. A. cannot predict; cannot predict B. cannot predict; can predict C. can predict; cannot predict D. can predict; can predict
Use for questions 9-11 PRICE LEVEL Question 9 OOO OB in the short run and the long run. OD in the short run and the long run. Question 10 OB in the short run and A in the long run. Refer to Figure 3. A decrease in taxes would move the economy from B to D in the short run and C in the long run. O to B in the long run. B O C in the short run and the long run. O to C in the long run. LRAS Oto A in the long run. O to D in the long run. Question 11 C QUANTITY OF OUTPUT A Ostays at A. O moves to B. O moves to C. Refer to Figure 3. If the economy starts at C, a decrease in the money supply moves the economy O moves to D. AD₂ SRAS, SRAS₂ Refer to Figure 3. If the economy is at A and there is a increase in aggregate demand, in the short run the econom AD.
i need help , i keep getting it wrOing and this is my last chance mIcroeconmics question 9
2. The graph below shows the demand and supply of baseball caps with inflexible prices. Suppose that 100 baseball caps is the optimal and most profitable level of production for the firm. Price (S) 20 10 150 Baseball A. Determine the equilibrium price and quantity at the medium level of demand (DM) B. Determine the equilibrium price and quantity if there is a demand shock that unexpectedly lowers demand (DL). C. Determine the equilibrium price and quantity if there is a demand shock that unexpectedly increases demand (DH). D. What can you conclude will happen to prices and output when this model is shocked by changes in demand?
When a government imposes a price ceiling, it will be forced to __________. a. Import goods. b. Buffer stock of goods c. Hoarding of goods d. Export of goods.
5. Say’s Law _____________ because ___________. The Law of demand is _____ true because: Always holds true; As prices increase, new suppliers enter a market leading to an increase in supply and lower prices over time; almost always true; sometimes no matter what the price we will buy anyway. Always holds true; Entrepreneurs are the key to income creation and therefore the ultimate demand for all goods and services; always true; as prices change our willingness and/or ability to buy changes. Is often true; of the law of supply, which shows that as prices increase, quantity supplied will rise; is always true; demand curves can never be vertical. Is rarely true; it is consumer wants and needs the emerge in a market first, then suppliers enter to capitalize on what we want or need; valid; there is a proven inverse relationship between prices and quantity demanded. Is often, but not always true; Through the coordinated activities of government agencies, adequate supplies of food,…
QUESTION 27 When withdrawals are greater than injections, then O a. injections will rise and withdrawals will fall. O b. national income will fall. O c. injections will rise to equate withdrawals and national income will increase. O d. injections will fall and national income will fall.