1.) The inverse demand function of a society with 1 million people will differ from that of a society with 2 million people in the following way: Please choose one

a.) The aggregate inverse demand function of a larger society will be to the right of that of the smaller society because we aggregate horizontally.

b.) The aggregate inverse demand function of a larger society will be the same as that of the smaller society because the amount of the good in the society is fixed due to the PPF that represent the economy.

c.) The aggregate demand function of a larger society may or may not be different than that of a smaller society. All depends on the price elasticity of demand.

2.) A tax system is progressive if:

a.) The share of income paid in taxes falls with income.

b.) Low-income groups get more coupons to obtain food and services than high-income groups.

c.) The after-tax income is more equally distributed in the society than the before-tax income.

3.) What explains the significant reduction in the number of people living and working on farms in the US in the past century?

a.) Significant increase in price of food that leads consumers to buying less food, hence leading to losses to agricultural producers.

b.) Increase in supply of cheap food coupled with income inelastic demand for food by the consumers as well as low price elasticity of demand by the consumers.

c.) Increase in supply of cheap food coupled with income elastic demand for food by the consumers as well as high price elasticity of demand by the consumers.