Suppose an Economy Is Comprised of Only Two Markets: One

question 3

Multiple Choice

Suppose an economy is comprised of only two markets: one for food and the other for housing.A tax on food used to finance transfer payments is likely to:

• A)decrease the price of food.
• B)increase the price of housing.
• C)decrease the price of housing.
• D)have no effect on either the price of food or housing.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation means the values are close to the mean, while a high standard deviation means they are spread out over a wider range.

Confidence Interval

A range of values defined so that there is a specified probability that the value of a parameter lies within it.

Mean Height

The average stature of individuals in a particular group or population, calculated by summing all heights and dividing by the number of individuals.

Campus Student

An individual enrolled in an educational institution, attending classes on the physical campus as opposed to online learning.