Economists disagree on whether labor taxes have a small or large deadweight loss
a. True
b. False
Indicate whether the statement is true or false
True
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When comparing the composition of world trade in the early 20th century to the early 21st century, we find major compositional changes. These include a relative decline in trade in agricultural and primary-products (including raw materials)
How would you explain this in terms of broad historical developments during this period?
If intended investment is $500 billion, and actual investment is $620 billion, then we know that
a. consumption is $620 billion b. unwanted inventory is $620 billion c. consumption is $120 billion d. unwanted inventory is $120 billion e. saving is $500 billion
When the wage rate rises, the substitution effect leads a worker to
a. increase consumption while the income effect leads to a decrease in consumption. b. decrease consumption while the income effect leads to an increase in consumption. c. increase consumption, as does the income effect. d. substitute sleep for other leisure.
Both Claudia and Javier are certified educators. Claudia makes $55,000 a year working as a teacher in a public high school in Chicago. Javier makes $40,000 working as a grade school teacher in a private school in Chicago. Which of the following is true?
A. From this information it cannot be determined who is better off because income is an imperfect measure of well-being. B. Javier is clearly worse off than Claudia, because he earns $15,000 a year less. C. Even though income is an imperfect measure of well-being, Claudia and Javier must be equally well off because either is free to switch jobs. D. Javier must be better off than Claudia if he is willing to take a job at $15,000 a year less than Claudia.