Recall the Application. Greece faced a major financial crisis in 2010 as its budgetary imbalance became quite severe. Since Greece is a member of the Euro-zone, it could no longer ________ as a potential solution to its financial problems
A) depreciate its currency B) raise taxes
C) reduce wages and prices D) cut spending
A
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In growth theory, the change in a country's standard of living is measured by the change in
A) employment. B) the nation's capital stock. C) wages per person. D) real GDP. E) real GDP per person.
If you hear that unemployment decreased by 2 percentage points to 6 %in the past year, while the labor force participation rate remained constant, it means:
A. on a net basis, 2 out of every 10 people lost their job in the last year. B. on a net basis, 2 out of every 100 people lost their job in the past year. C. on a net basis, 4 out of every 100 unemployed persons found a job in the last year. D. on a net basis, 20 out of every 1,000 unemployed persons found a job in the last year.
To an economist, the term "needs"
A. identifies the purchases of basic goods and services. B. refers only to material desires but not nonmaterial desires. C. refers to the purchase of goods by the poor. D. is objectively undefinable.
In order to discourage consumers from consuming sugary soft drinks, the government is considering placing a tax on sugary soft drink sales. Which of the following statements is true?
A. Given the numerous alternatives, consumers' demand for sugary soft drinks is relatively elastic and the tax will likely work to discourage sugary soft drink consumption. B. The tax on sugary soft drinks will likely decrease the demand for sugar-free soft drinks. C. The tax on sugary soft drinks will likely raise considerable revenue, but will be unlikely to reduce the consumption of sugary soft drinks by consumers. D. Taxes do not discourage consumers from consuming products.