Economics : Micro 4
4th Edition
ISBN: 9781305436855
Author: MCEACHERN
Publisher: CENGAGE L
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Question
Chapter 1, Problem 4.7PA
To determine
a)
The mistake in the statement that, Government revenues will always increase with an increase in the taxes.
Concept introduction:
When one variable varies systematically with another variable.
Capacity of one variable to influence other.
Period of economic decline with low production and demand.
To determine
b)
The mistake in the statement that, we should increase the imports in case of recession.
Concept introduction:
When one variable varies systematically with another variable.
Capacity of one variable to influence other.
Period of economic decline with low production and demand.
To determine
c)
The mistake in the statement that, US steel industry and the entire economy is helped by increasing the tariff on imported steel.
Concept introduction:
When one variable varies systematically with another variable.
Capacity of one variable to influence other.
Period of economic decline with low production and demand.
To determine
d)
The mistake in the statement; to reduce the national debt, US government can sell the gold in Fort Knox at $1200 per ounce.
Concept introduction:
When one variable varies systematically with another variable.
Capacity of one variable to influence other.
Period of economic decline with low production and demand.
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