A negative income tax works by
A. giving money to everyone in the U.S.
B. not taxing people who make negative income.
C. taxing people until they have a negative income.
D. giving people below a certain income level a lump sum and then taxing further income.
Answer: D
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Entrepreneurship, as a factor of production, refers to
A) the technology used by firms. B) the human capital accumulated by workers. C) the value of the firm's stock. D) the human resource that organizes labor, land, and capital. E) the capital the firm uses.
If a bank has $100,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is
A) $30,000. B) $25,000. C) $20,000. D) $10,000.
Your 65-year-old father is going to retire next year. He would like to have an income of $20,000 per year for the remainder of his life
If he is expected to live for ten more years, write an algebraic expression to indicate the amount of money he needs today to pay him this sum of money if the interest rate is 10 percent.
The multiplier for changes in taxes is smaller than the multiplier for changes in government purchases because not every dollar of tax cut is spent.
Answer the following statement true (T) or false (F)