Which of the following is an example of a contractionary fiscal policy?
A. the federal government decreasing the amount of money spent on public health programs
B. the Fed buying government securities in the open market
C. the federal government reducing pollution standards to allow firms to produce more output
D. the federal government decreasing the marginal tax rate on incomes below $200,000
Answer: A
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Which of the following is false? a. Markets can make products better
b. Markets can make products cheaper. c. Markets can create new products. d. Markets only result in producing those goods and services that are socially desirable.
In the country of Freedonia, men and women have the same level of education and choose different forms of work in the same proportions. The only real difference is that men typically stay home to raise young children, returning to the work force after their children enter elementary school. If no discrimination exists, then we would expect that, on average,
a. women would earn less than men. b. women would earn more than men. c. men and women would earn the same wage. d. wage differences between men and women would be due to differences in beauty.
The marginal revenue product schedule for land refers to
A. a firm's demand for land. B. the final demand for land. C. the firm's supply of land. D. the marginal physical product schedule for land.
In a progressive tax structure,
A. the marginal tax rate exceeds the average tax rate. B. vertical equity exists. C. the average tax rate rises as income falls. D. all the choices.