The government finances Social Security through
A) excise taxes.
B) payroll taxes.
C) the sale of goods and services.
D) state taxes.
Answer: B
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A depreciating currency makes foreign inputs cheaper and shifts the aggregate supply curve outward
a. True b. False Indicate whether the statement is true or false
Suppose an early freeze decreases the supply of oranges. The equilibrium quantity in this market will not change after the change in supply if the demand curve were: a. perfectly horizontal. b. perfectly vertical
c. downward sloping. d. upward sloping.
A Blue Ribbon Committee has decided that acid rain should be reduced and is trying to determine the optimal level of reduction. There are benefits from reducing acid rain (more wildlife and forests, better health, etc.), but there are also costs. The committee estimates that the marginal benefit of each unit of reduction is $700 - 5R, where R is units of reduction, and the marginal cost is 2R. If the committee wants to maximize the net benefit from reducing acid rain, what is the optimal level of pollution reduction?
A. $200 B. $100 C. $20 D. $10
An increased growth rate in Malaysia has increased the Malaysian demand for U.S.-produced coal. Malaysia increases its imports of U.S.-produced coal by $20 million. U.S. net exports will
A. increase by more than $20 million. B. increase by less than $20 million. C. increase by $20 million or more. D. increase by $20 million.