(Consider This) In "Slicing the Pizza," the shrinkage of the pizza refers to the:
A. fact that poor people are not helped by the income-maintenance system.
B. efficiency losses—the losses of output and income associated with the tax-transfer system.
C. tendency of rich people in developing nations to hoard their wealth overseas.
D. failure of the Internal Revenue Service to collect all the tax revenues owed by taxpayers.
Answer: B
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A) expansionary fiscal policy; low B) contractionary fiscal policy; high C) contractionary monetary policy; low D) expansionary monetary policy; low
The Employment Act of 1946, which sets up the Council of Economic Advisers,
(a) was the final legislation of the New Deal. (b) grew out of the War Manpower Board's experience. (c) grew out of financial negotiations with Britain. (d) was the product of New Deal experience with fiscal policy.
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A) by an inward shifting of the curve. B) by a point inside the curve. C) by a point near the top of the curve. D) by a point outside the curve.
When the price of ice cream falls, we would expect the quantity demanded of ice cream to rise, ceteris paribus
a. True b. False Indicate whether the statement is true or false