The most important determinant of a household's consumption spending is:
a. its disposable income
b. the in-kind transfers received by the household.
c. the level of education of the members of the household.
d. the interest rate.
e. the ratio of wage to non-wage income of the household.
a
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The problem with allocating income according to productivity is that some people have difficulty earning income
a. True b. False
Patent and copyright laws are major sources of
a. natural monopolies. b. government-created monopolies. c. resource monopolies. d. antitrust regulation.
If a tax on a good is doubled, the deadweight loss from the tax
a. stays the same b. doubles c. increases by a factor of four d. could rise or fall
The crowding-out effect refers to the possibility that:
A. when used simultaneously, expansionary fiscal and monetary policies are counterproductive. B. the asset demand for money varies inversely with the interest rate. C. deficit financing will increase the interest rate and reduce investment. D. an increase in the supply of money will result in a decline in velocity.