Which of the following correctly describes the effects of a decrease in net taxes?
a. Disposable income increases, consumption decreases, and saving decreases.
b. Disposable income increases, consumption increases, and saving increases.
c. Disposable income decreases, consumption increases, and saving increases.
d. Disposable income decreases, consumption decreases, and saving decreases.
e. There is no effect on either disposable income, consumption, or saving.
b
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Based on the following data for the country of Tiny Town, the employment-to-population ratio equals ________ multiplied by 100. Population = 200 Working age population = 100 Labor Force = 90 Number of employed persons = 75
A) 90/100. B) 75/200 C) 90/200. D) 75/100.
If technological change is "neutral," then
A) output per worker declines, output per unit of capital increases. B) "effective labor input" increases, output per unit of capital declines. C) output per worker increases, output per unit of capital is constant. D) Both output per worker and output per unit of capital change.
Which of the following statements is TRUE?
A) At the monopolist's equilibrium, resources are being efficiently allocated. B) With a monopoly, the value to society of the last unit produced is less than it's production cost. C) Monopolists raise the price and restrict production, compared to a competitive situation. D) A monopolist always produces a higher level of output than would be produced if the market were competitive.
Say the required reserve ratio is 10 percent. If you pay back a loan of $20,000 a bank had previously made to you, the act of paying back the loan: a. adds $2,000 in bank reserves
b. adds $20,000 in bank reserves. c. eliminates $2,000 in bank reserves. d. eliminates $20,000 in bank reserves.