Consumption will generally decrease when the income tax rate ________ or transfer payments ________.
A. increases; increase
B. increases; decrease
C. decreases; increase
D. decreases; decrease
Answer: B
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The above figure illustrates Mary's production possibilities frontier. If Mary wants to move from point d to point c, she must
A) improve technology. B) increase her accumulation of capital. C) give up some of good X in order to obtain more of good Y. D) give up some of good Y in order to obtain more of good X.
Refer to Figure 12.5. If exchange rates are floating, an expansionary monetary policy would best be represented by a movement from ________ in panel (a) and a corresponding movement from ________ in panel (b)
A) point A to point B; point X to point Y B) point C to point A; point X to point Y C) point D to point C; point Y to point X D) point B to point D; point Y to point X
The economic impact of the multiplier is ____, and then becomes ____
a. slow, faster b. small, tiny c. large, smaller d. small, larger
Briefly explain what public choice theorists believe about the role of self interest in economics and politics.
What will be an ideal response?