Interest earned on personal savings accounts is currently subject to taxation. What may happen to economic growth in the United States if Congress passes legislation exempting this interest from taxation?
If Congress exempts interest earned on personal savings accounts from taxation, then the higher net
earnings may induce Americans to save more. More saving may result in higher levels of investment.
Capital deepening may occur, leading to higher labor productivity and economic growth.
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Because wage rates are so low in Africa, why don't Microsoft, Cisco and other major corporations close down their American operations and move to Africa?
What will be an ideal response?
Fill in the blank: Your textbook authors suggest ________ is the goal of a price-searching firm
A) just getting by B) maximizing sales C) maximizing net revenue D) maximizing total revenue E) maximizing the markup
People who often create benefits for the minority and impose the cost on the majority are called:
a. fair-interest groups. b. encounter groups. c. laissez-faire groups. d. special-interest groups.
The opportunity cost of going to college for a student receiving a scholarship
A. is the risk of dropping out. B. is the expenses for food and clothing that she purchases while in college. C. is zero because she does not have to pay tuition. D. is the income that she would have earned if she did not go to college.