An increase in personal income tax rates will cause a(n):
A. decrease in aggregate demand.
B. decrease in the quantity of real domestic output demanded.
C. increase in the quantity of real domestic output demanded.
D. increase in aggregate demand.
Answer: A
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Full integration would lower the effective tax rate on capital and, therefore, lead to increased saving.
A. True B. False C. Uncertain
The only reason that exchange rates change is because overall price levels in the countries change
Indicate whether the statement is true or false
A shark repellent activity is designed to __________ in order to secure the position of the ___________
a. thwart competitors; shareholders b. protect managers; suitors c. lure white knights; managers d. thwart takeovers; managers e. thwart takeovers; shareholders
If Scotland produces only mead, and England produces only ale, how many pints of ale would buy one pint of mead?
a. no fewer than the opportunity cost of mead in Scotland b. fewer than the opportunity cost of mead in Scotland c. fewer than the opportunity cost of mead in England d. as many pints of mead as you can buy with one pint of ale e. not enough information given