If the government reduced marginal tax rates on Social Security receipts to zero,
A. Output from older workers would decrease.
B. All retirees would receive full benefits.
C. Payroll taxes for the program would decrease.
D. The financial cost of the program would decrease.
Answer: B
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Suppose a tax equal to the value of the external cost of producing car batteries is imposed by government on all car battery manufacturers. All of the following will result from the tax except
A) an increase in demand for car batteries. B) a decrease in the market supply of car batteries. C) an increase in the equilibrium price of car batteries. D) a decrease in the equilibrium quantity of car batteries produced and consumed.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country B could not make would be:
A. (300 iPods, 500 tablets). B. (400 iPods, 250 tablets). C. (200 iPods, 750 tablets). D. (100 iPods, 1,000 tablets).
Canadian imports involve an:
A. outflow of foreign currencies from Canada to foreigners. B. inflow of Canadian dollars from foreigners to Canada. C. inflow of foreign currencies from foreigners to Canada. D. outflow of Canadian dollars from Canada to foreigners.
Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Ben wants to harvest as many trees as possible to maximize short-run profit, and then move on. They face the same
production costs. Refer to the information given. If property rights are well-defined and enforced: A. Alex could buy Ben's part of the land and harvest and replant in a sustainable manner. B. Ben could buy Alex's part of the land and harvest all the timber as quickly as possible. C. incentives to harvest and replant in a sustainable manner are greater than with no property rights. D. all of these could occur.