Disposable income is income less net taxes.
Answer the following statement true (T) or false (F)
True
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Maurice loses his job and decides to sit on the beach rather than looking for work the next few months. Other things the same, the unemployment rate
a. increases, and the labor-force participation rate is unaffected.
b. increases, and the labor-force participation rate decreases.
c. decreases, and the labor-force participation rate increases.
d. decreases, and the labor-force participation rate decreases.
In a centrally planned economy
A. consumers do not have to consider prices when shopping. B. prices are zero. C. the government sets prices and decides how much of each good is to be produced. D. producers have an incentive to produce those goods most desired by consumers at the lowest cost.
In the face of gasoline prices approaching $4.00 automobile dealerships are heavily marketing their compact cars and hybrid vehicles
However, an interesting development is that many of these dealerships are offering their economy cars at MSRP (manufacturers suggested retail price) without offering discounts. What do you suppose these dealerships believe about the price elasticity of demand for these economy cars?
Which of the following is true?
a. The close link between personal income and provision of productive resources to others provides individuals with a strong incentive to develop skills. b. Income can be taxed away from some and transferred to others without altering the incentive to engage in productive activities. c. Holding technology constant, the size of the economic pie available for distribution among economic participants is fixed. d. In a democratic setting, the government's tax and spending policies can redistribute income without influencing the size of the economic pie. e. Both b and d are correct.