Neutral taxes do not impose excess burdens.
Answer the following statement true (T) or false (F)
True
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Refer to the scenario above. The housekeeper behaves in this particular way due to the ________
A) existence of asymmetric information B) presence of a positive externality C) presence of a free-rider problem D) existence of high incentive to work
Ceteris paribus, the greater the foreign holdings of the U.S. treasury securities:
a. the lower the value of the U.S. dollar in the foreign exchange market. b. the higher the interest rate in the U.S. c. the greater the level of U.S. imports. d. the lower the wealth of the U.S. citizens. e. the lower the tax rate in the U.S. economy.
Which of the following people would be considered frictionally unemployed?
a. The President of the United States b. An elementary school student c. A lifeguard unemployed during the winter d. A high school graduate entering the labor market for the first time e. A person laid off from his job
Which of the following statements is true for the U.S. economy?
a. Higher wages in the unionized sectors of the economy push up wages in the nonunion sectors as well. b. Inflation tends to accelerate when the proportion of the labor force that is unionized increases. c. Union workers currently receive wages that are 15 to 20 percent higher, on average, than similar nonunion workers. d. When we compare similar union and nonunion workers, we find virtually no difference in the wages they receive.