If the depreciation rate in an economy is 10%, and the capital stock in the economy is $1,000, the level of investment required to keep the economy at a steady state is equal to:
A) $110. B) $1,000. C) $250. D) $100.
D
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Refer to Figure 4-4. What is the value of the deadweight loss at the equilibrium price of $15?
A) $0 B) $40 C) $60 D) $100
If, as your taxable income decreases, you pay a smaller percentage of your taxable income in taxes, then the tax is
A) proportional. B) unfair. C) progressive. D) regressive.
To convert nominal economic data from several different years into real, inflation-adjusted data, the starting point is to choose a ____________ year.
a. base b. future c. past d. compliant
It is important to distinguish between the privately held portion of the national debt and the portion held by government agencies and the Federal Reserve system because
a. the government will not have to repay the privately held debt. b. only the privately held debt creates a net interest liability for the federal government. c. the privately held debt does not create a net interest liability for the federal government. d. taxes will have to be raised in order to pay the interest on the debt held by the Federal Reserve system.