Which of the following transactions would take place in the underground economy?
A) Samuel tells his wife he is going to work but really goes to the local casino.
B) Tanisha bought a tablet computer for $269 but decided to sell it to her sister instead of keeping it.
C) Laurie buys a case of wine at a liquor store, not realizing that 15% of the purchase price goes to the government as tax revenue.
D) Bailey makes beef jerky and sells it at a local flea market for cash to avoid paying taxes.
D
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Differentiate between the adaptive expectations and the rational expectations models of inflation
What will be an ideal response?
Just before the Asian crisis, Thailand had large current account deficits.
Answer the following statement true (T) or false (F)
A decrease in the tax rate will ________ the disposable income of households and ________ the size of the multiplier effect
A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease E) increase; not change
A firm that has a well-earned reputation for providing high quality:
A. will not survive in a market if low quality is provided at a lower price. B. has found a way to address the problem of adverse selection. C. has found a way to address the moral hazard problem. D. has found a way to address the free-rider problem.