Which of the following is a true statement?
a. International data leave few doubts that a nation's GDP per person is associated with its citizens' standard of living.
b. Rich and poor countries often have vastly different standards of living, but similar levels of real GDP per person.
c. The value of leisure time is included in the calculation of GDP per person.
d. International data indicate that measures on the distribution of income are closely associated with GDP per person.
a
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A local government currently has a tax base of $10 billion and a tax rate of 10 percent. If the tax rate is increased to 12 percent, the tax base becomes $8.5 billion. If the goal is to maximize tax revenues the tax rate should be
A) raised above 12 percent. B) kept at 10 percent. C) raised to 12 percent. D) abolished.
Under adaptive expectations theory, a decrease in the short-run aggregate demand curve ____ the inflation rate and ____ the unemployment rate
a. increases; increases b. increases; decreases c. decreases; increases d. decreases; decreases
The idea that consumers continue to adjust their purchases until the marginal utility per last dollar spent on all items is equal is called the
A. law of increasing costs. B. consumer optimum. C. rule of 72. D. law of diminishing marginal utility.
The figures in the table below are for a single commercial bank. All figures are in thousands of dollars.
Refer to the data given above. If the reserve ratio is 10 percent and a check for $10,000 is drawn and cleared in favor of another bank, then the actual reserves of the bank above will:
A. Still be $40,000
B. Decrease $10,000
C. Decrease $11,000
D. Decrease $9,000