What would be expected to happen to the size of the underground economy if:
a. businesses tax rates decreased.
b. government regulations on businesses increased dramatically.
c. the sale and use of marijuana was legalized in all 50 states.
a. A decrease in business taxes would tend to decrease the size of the underground economy.
b. An increase in regulations on businesses would tend to increase the size of the underground economy.
c. Legalized sale and use of marijuana would tend to decrease the size of the underground economy.
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The above table shows the total product schedule for Hair Today, a hair styling salon. The average product when four workers are hired is
A) 10 hair stylings. B) 15 hair stylings. C) 20 hair stylings. D) 240 hair stylings. E) the same as when five workers are hired.
The burden of the debt can be viewed as
A. a moral question. B. a political question. C. a financial question. D. all of these answer options are correct.
Which of the following statements is false?
a. A decrease in the reserve ratio does not change the monetary base. b. Purchases of foreign currency by the central bank increase the monetary base. c. Discount loans to banks decrease a nation's monetary base. d. All are false. e. All are true.
As the interest rate increases, the present value of future sums decreases, so firms will find fewer investment projects profitable
a. True b. False Indicate whether the statement is true or false