Suppose that the U.S. personal income tax was eliminated and replaced with a fixed tax that raised the exact same amount of revenue. The multiplier would be
A. larger.
B. unchanged.
C. smaller.
D. incalculable.
Answer: A
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An increase in the price of a firm's output
A) raises the value of marginal product of each unit of labor. B) shifts the firm's demand for labor curve rightward. C) results in the firm increasing the amount of output it produces. D) All of the above answers are correct.
Which of the following situations is likely to generate noncooperative behavior in repeated games?
A) The game is repeated a finite number of times. B) There are many players in the game. C) The payoffs can change rapidly from one game period to the next. D) All of these situations can generate noncooperative behavior.
A wage offer that is above the market wage, intended to avoid the adverse selection problem, is called a(n)
a. efficiency wage b. union wage c. selection wage d. spurious wage e. opportunity cost wage
If price were set by the government at $10, there would be a price __________, that would cause a ___________ of ______ units.
A. floor; surplus; 12
B. floor; shortage; 14
C. ceiling; shortage; 12
D. ceiling; surplus; 14