A decrease in taxes will have no effect on real GDP if
A) the tax decrease is offset by an increase in government spending.
B) people look at changes in taxes only in the present.
C) the Ricardian equivalence theorem holds.
D) there is no crowding out.
C
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An example of "investment" in the national income accounts is the purchase of
A) a new van by a potter, who packs it with his wares and travels to art shows. B) 100 shares of Intel stock on the New York Stock Exchange. C) a 100-year-old house that was just put on the protected historic sites list in the year in question. D) a U.S. government bond.
When a system of pollution rights is in effect, polluters have no economic incentive to reduce the amount of pollution they generate
a. True b. False
Microeconomics is concerned with:
A. the aggregate or total levels of income, employment, and output. B. a detailed examination of specific economic units that make up the economic system. C. positive economics, but not normative economics. D. the establishing of an overall view of the operation of the economic system.
Harry needs to hire an accountant but does NOT know how to find a good one. The accountant is a(n)
A) experience good. B) credence good. C) logo good. D) search good.