As income falls, the demand for inferior goods
A. rises.
B. falls.
C. stays about the same.
A. rises.
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Which of the following statements is true?
A) An increase in potential GDP increases aggregate supply and shifts the AS curve leftward. B) A decrease in potential GDP decreases aggregate supply and shifts the AS curve leftward. C) An increase in the money wage rate shifts the AS curve rightward. D) A fall in the price level shifts the AS curve leftward. E) An increase in the money wage rate increases potential GDP.
The principal-agent problem is
A) often less severe for partnerships than for corporations. B) often more severe for partnerships than for corporations. C) severe for corporations but nonexistent for partnerships. D) most severe for sole proprietorships.
Which of the following statements about the Earned Income Tax Credit Program (EITC) program is FALSE?
A) On net the EITC discourages work by low- or moderate- income earners more than it rewards work. B) It provides rebates of Social Security taxes to low-income workers. C) Recipients who receive benefit payments under Social Security are also eligible for SSI. D) It is the largest poverty reduction program in the U.S..
An initial public offering
A. Increases the percentage of the company owned by the management and original entrepreneurs. B. Indicates the demand for a company's new product. C. Allows a company to raise money without increasing debt. D. Allows a company to borrow funds for investment and growth.