Economists have no concern that children on welfare might be more likely to end up on welfare as adults
a. True
b. False
B
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In theory, a corrective tax _____ the _____ will create the optimal result
a. equal to; externality b. above; externality c. equal to; price d. above; price
Jim is haggling with a car dealer on the price of a used car. If the dealer is getting a bonus per sale made, in addition to the commission, the storekeeper's
a. Disagreement value increases b. Eagerness to agree increases c. Disagreement value decreases d. Both B&C
The tax treatment of corporate profit means that corporations
a. cannot profitably issue common stock. b. choose investment opportunities more efficiently than do other types of firms. c. limits the things in which corporations can invest. d. can generally avoid paying federal taxes but not state taxes.
Which of the following causes the aggregate supply curve to shift to the left, ceteris paribus?
A. An increase in the cost of labor B. A decrease in the money supply C. An increase in government spending on goods D. A decrease in interest rates