What are the two tools of fiscal policy that governments can use to stabilize an economy?
A. government spending and technology improvements
B. government spending and taxation
C. taxation and controlling imports
D. taxation and controlling exports
Answer: B
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In using the Internal Rate of Return approach, one must first calculate the discount rate on the investment that makes
A) the net present value equal zero. B) the interest rate equal zero. C) the interest rate equal the discount rate. D) the first year's return positive.
If an individual is taxed at a 17 percent rate for each extra dollar earned, the reference is to the
A. Average tax rate. B. Effective tax rate. C. Nominal tax rate. D. Marginal tax rate.
An In the News article titled "Perceptions of Government Failure" implies that people lack confidence in the government. If this is true, it may be due to persistent examples of
A. Merit goods. B. Market failure. C. Government failure. D. Efficiency.
At the short-run break-even point, the firm is
A) earning zero accounting profit. B) losing money. C) earning zero economic profit. D) ready to shutdown.