Which of the following is NOT related to fiscal policy?

A. reducing the budget deficit
B. increasing government expenditures
C. decreasing marginal tax rates
D. passage of a new regulation on a specific industry


Answer: D

Economics

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In the next three years, the federal tax system could be replaced with a national retail sales tax.

A. True B. False C. Uncertain

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Which of the following economists is/are considered the leader(s) in the theory of market behavior?

(a) Alfred Marshall (b) Adam Smith (c) David Ricardo (d) All of the above

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Trade between two parties is beneficial because:

a. it ensures that the standard of living in the poorer country matches its trading partner eventually. b. it enables each to consume a bundle of goods that it cannot produced domestically. c. it has an immediate effect on an economy by increasing its production set. d. it allows the economy of both trading partners to grow equally.

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Which of the following is correct concerning opportunity cost?

a. Except to the extent that you pay more for them, opportunity costs should not include the cost of things you would have purchased anyway. b. To compute opportunity costs, you should subtract benefits from costs. c. Opportunity costs and the idea of trade-offs are not closely related. d. Rational people should compare various options without considering opportunity costs.

Economics