To grow and prosper, less-developed countries must not:
A. invest in human capital.
B. build a strong infrastructure.
C. shift resources out of the production of consumer goods and into the production of capital goods.
D. shift resources out of the production of capital goods and into the production of consumer goods
Answer: D
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Which of the following would indicate that an income tax is progressive?
a. high-income people pay $3,000 . low-income people pay $1,000 b. low-income people pay $3,000 . high-income people pay $1,000 c. high-income and low-income people all pay $1000 each d. high-income people pay 20 percent of their income in taxes; low-income people pay 10 percent e. both high-income and low-income people pay 10 percent of their income in taxes
_____ and _____ are major factors in de-integration, which act in opposite directions
a. Vertical restraints; opportunism b. Uncertainty; volumetric interdependence c. Asset specificity; uncertainty d. Volumetric interdependence; vertical restraints
The sharp rise in the debt-to-GDP ratio in 2008-2009
a. was exclusively automatic due to the effect of declining income on government outlays and tax revenues. b. was exclusively due to an aggressive fiscal policy. c. was exclusively due to military expenditures. d. was partly automatic due to the effect of declining income on government outlays and tax revenues, and partly due to an aggressive fiscal policy. e. was exclusively due to foreign aid expenditures.
Gross fiscal expenditure in a country increased by $250,000 during a certain year. If the value of the simple spending multiplier is 3, then real GDP in this country will increase by: a. $175,000. b. $750,000. c. $45,000
d. $80,000.