The Ricardian Equivalence proposition suggests that a tax increase that causes a budget surplus will
A) cause an increase in output.
B) cause no change in output.
C) cause a reduction in output.
D) a reduction in consumption.
B
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Since 1980, the percentage of part-time workers who are part time for economic reasons
A) has steadily decreased. B) has steadily increased. C) at first increased, then generally decreased. D) generally increased in recessions and decreased in expansions. E) has remained approximately constant.
Which of the following would decrease the unemployment rate?
A) government aid to retrain unemployed workers B) an increase in the efficiency wage C) an increase in the minimum wage D) an increase in labor union membership
If the government required car makers to install more costly and effective emission control devices on cars, it will lead to:
a. a higher price of cars and a larger quantity of cars sold. b. a higher price of cars and a smaller quantity of cars sold. c. a lower price of cars and a larger quantity of cars sold. d. a lower price of cars and a smaller quantity of cars sold.
What do economists mean by the “rule of rational choice”?
What will be an ideal response?