Income tax payments
a. fall during periods of prosperity, thus reducing inflationary pressures
b. fall during periods of prosperity, thus increasing inflationary pressures
c. rise during periods of prosperity, thus reducing inflationary pressures
d. fall during recessions, thus increasing the problem of unemployment
e. rise during recessions, thus increasing the problem of unemployment
C
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The trade-offs facing consumers include:
A) how to allocate income across goods and serves. B) how to allocate income between consumption and savings. C) both A and B D) none of the above
You are the mayor of your home town, and one day you arrive at city hall to find angry voters demonstrating against you. They are mad because your office created a garbage-collection monopoly by awarding only one company a permit to collect garbage in
your town. The voters claim that the company is overcharging and providing poor service. They want you to do something that will lower rates and improve service. You call your staff economist, who presents evidence that there are substantial economies of scale to garbage collection. What are your options if you are interested in efficiency?
ItemBillions of DollarsCheckable Deposits$2,000Small Time Deposits350Currency Held by the Public80Savings Deposits, Including Money-Market Deposit Accounts1,300Money-Market Mutual Funds Held by Individuals600Money-Market Mutual Funds Held by Businesses700Refer to the above table. The size of the M2 money supply is:
A. $3,730. B. $4,470. C. $4,330. D. $3,980.
If social returns to the production of a good are less than private returns, then we can conclude that relative to the social optimum, the good will be
A) overproduced and underpriced. B) underproduced and overpriced. C) overproduced and overpriced. D) underproduced and underpriced.