Which of the following could lead to an upward shift in the consumption function?
A) A decrease in home values
B) A decline in wages
C) An increase in stock prices
D) A rise in wages
C
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Trade theory suggests that Japan would gain from a subsidy the United States provides its grain farmers if the gains to Japanese consumers of wheat products more than offsets the losses to Japanese wheat farmers. This would occur as long as Japan
A) is a net importer in bilateral trade flows with the United States. B) is a net importer of wheat. C) has a comparative advantage in wheat. D) has an absolute advantage in producing wheat. E) is involved in intra-industry trade with the United States.
What part of federal government spending has grown the most rapidly in recent years?
a. national defense b. welfare c. interest on the national debt d. social security and Medicare e. all other forms of federal government spending
The main purpose of the Laffer curve is to crudely suggest
A. how government can increase tax revenues by increasing tax rates. B. that a tax cut will lead to an increase in GDP. C. the disincentive effects of high marginal tax rates. D. the tax rate which will yield maximum revenue for the government.
The fact that it takes time for government to take action, even after a problem has been diagnosed, is one reason for the occurrence of:
A. inside lags. B. outside lags. C. crowding out. D. the multiplier effect.