EBK PRINCIPLES OF MACROECONOMICS
EBK PRINCIPLES OF MACROECONOMICS
12th Edition
ISBN: 9780134079592
Author: Oster
Publisher: YUZU
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Chapter 1.A, Problem 2P
To determine

Relationship between income and consumption.

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A tax on gasoline is proposed in order to raise money for the pollution-control activities of several public agencies. The tax will be 10¢ per gallon, and last year 10.3 million gallons of gasoline were used by motorists (this is strictly an illustrative number). Does this mean that we can anticipate $1,030,000 in revenues from this tax? Explain and use a graph to answer this question.
7. Dependent & independent variables; positive & inverse relationships: Ypsilanti Market Research conducted a survey to find out whether people who earn more money purchase more expensive goods. The following table indicates the relationship between income the survey subjects earned and the price of the car that they purchased. Price Income (Thousands of dollars per car) (Thousands of dollars per year) 0. 10 20 15 40 20 60 25 80 30 100 In the diagram below, draw the graph corresponding to the above table.
How has government expenditure in France throughout the period for which data is available in the graph?
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