Which of the following is given in the video as an example of a negative real shock to the economy?
A. A technological advance that increases investment
B. A rapid rise in the price of oil
C. A decrease in consumer confidence
D. A stretch of very bad weather
Ans: B. A rapid rise in the price of oil
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The earned income tax credit (or EITC):
A. reduces the sales tax paid by low-income workers. B. provides tax credits to firms who hire low-income workers. C. gives low-income workers credits on their federal income taxes. D. reduces the tax rate on investment income.
Price floors are typically accompanied by a standard series of symptoms. What are they?
What will be an ideal response?
In general, a higher real wage rate decreases the quantity of labor supplied because fewer people enter the labor force
Indicate whether the statement is true or false
Since NAFTA was signed, Mexico saw the productivity of its firms:
a. decrease in the nonmaquiladora plants. b. decrease in the maquiladora plants. c. increase in the maquiladora plants at a faster pace than in the nonmaquiladora plants. d. increase in the maquiladora plants at a slower pace than in the nonmaquiladora plants.