Which of the following is not included in employee compensation?
A. Interest payments from businesses to households
B. Social security taxes paid to the government by employers
C. Salaries
D. Fringe benefits
Answer: A
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Most economists believe that the best monetary policy target is
A) the money supply. B) an interest rate. C) the discount rate. D) total bank reserves.
Many college football teams require a "donation" in order to purchase season tickets. This is an example of
A) price gouging. B) tie-in sale. C) two-part pricing. D) anti-competitive behavior.
The CPI tends to overstate the true inflation rate because
A. we cannot know what the true inflation rate is. B. the market basket actually selected is inappropriate. C. the market basket fails to weigh housing costs sufficiently. D. it fails to consider the effects of new products in the marketplace.