Tax distortions refer to the cost of inflation that comes from:
A. the money, time, and opportunity used to change prices to keep pace with inflation.
B. the time, money, and effort one has to spend managing cash in the face of inflation.
C. being penalized via taxes for making more money in dollars, even though real purchasing power hasn't changed at all.
D. labor costs associated with inflation.
C. being penalized via taxes for making more money in dollars, even though real purchasing power hasn't changed at all.
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The early 1980s "Star Wars" space-based defensive weapons system was an example of _____
a. economic warfare b. a military alliance c. negative externality d. undefined property rights
The Taft-Hartley Act of 1947 outlawed
A) strikes. B) make-work rules and forcing unwilling workers to join a union. C) right-to-work states. D) none of the above.
Which of the following is not a key idea in the economic way of? thinking
A. People make rational choices by comparing costs and benefits. B. Poor people are discriminated against and should be treated more fairly. C. A rational choice is made at the margin. D. Choices respond to incentives.
The effect of an initial spending change causing a larger change in overall output is:
A. the substitution effect. B. the income effect. C. the multiplier effect D. crowding out.