Which of the following statements is not correct?
a. Reducing taxes on interest income might encourage people to save more.
b. Reducing taxes on interest income might reduce saving.
c. A price increase will create income and substitution effects that will both always work to reduce consumption of the good.
d. Utility is maximized when the marginal rate of substitution between any two goods equals the relative prices of the two goods.
c
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Refer to Figure 11-1. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy
If the United States decided to double its support of university research, this would cause a movement from A) B to A. B) B to C. C) A to B. D) D to C.
In profit centers
a. Managers are difficult to evaluate because there is no simple metric of how well they performed b. Managers typically do not have the information to run their division efficiently c. Managers' decisions rarely affect other divisions d. Managers typically are incentivized to run their division efficiently
Fiscal policy is the use of government purchases and taxes to alter RGDP and the price level
a. True b. False Indicate whether the statement is true or false
The real, effective exchange rate is:
a. The same as the nominal, effective exchange rate. b. The value of one currency in terms of another currency. c. The nominal, bilateral exchange rate adjusted for the international price levels of the two countries. d. The weighted-average value of a currency relative to many foreign currencies. e. The nominal, effective exchange rate adjusted for a nation's price level relative to many foreign countries' prices.