Under current tax laws, individuals do not pay taxes on health insurance benefits they receive from their employers. As a result
A) the federal government spends more than it receives in tax revenue.
B) individuals are encouraged to want generous health coverage that reduces their incentives to cut costs.
C) the quality of health care provided is less than it would be if benefits were taxed.
D) politicians are encouraged to raise income and payroll taxes.
Answer: B
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If Jennifer withdraws $750 from her checking account and holds it as currency, then M1 will ________ and M2 will ________
A) decrease; not change B) not change; increase C) decrease; decrease D) not change; not change
Which of the following is a correct statement about bond prices, other things equal?
a. a lower face value leads to a higher bond price b. a higher risk of default leads to a higher bond price c. a higher risk of default leads to a lower yield d. fewer coupon payments lead to a higher bond price e. a higher price leads to a lower yield
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, what effect would these flows have had on Venezuela's overall balance and reserves account?
a. Overall balance would rise and reserves account would fall. b. Overall balance and reserves account would both equal zero. c. Overall balance would fall and reserves account would equal zero. d. Overall balance would equal zero and reserves account would fall. e. Overall balance would fall and reserves account would rise.
In both perfectly competitive and monopoly markets, the price per unit of a good is equal to the