In 2010, the co-chairmen of President Obama's deficit reduction commission proposed curtailing or eliminating the mortgage interest deduction that millions of homeowner taxpayers receive every year. Economists who favor the proposal would argue that (i) too much of the economy's capital stock is tied up in residential housing. (ii) too little of the economy's capital stock is invested in
corporate capital. (iii) the misallocation of resources results in lower productivity and reduced real wages.
a. (i) only
b. (ii) only
c. (i) and (ii) only
d. (i), (ii), and (iii)
d
You might also like to view...
The goal of a perfectly competitive firm is to maximize its
A) normal profit. B) revenue. C) output. D) economic profit.
Total product is
A) the increase in output that results from a one-unit increase in the quantity of labor employed with all other inputs remaining the same. B) maximum output that a given quantity of labor can produce. C) maximum amount of output produced by a given quantity of labor divided by the given quantity of labor employed. D) maximum amount of amount of output produced by a given quantity of labor divided by price of the output.
Which of the following is true?
A. In ordinary least squares estimation, each observation is given a different weight. B. In weighted least squares estimation, each observation is given an identical weight. C. In weighted least squares estimation, less weight is given to observations with a higher error variance. D. In ordinary least squares estimation, less weight is given to observations with a lower error variance.
Keynesian macroeconomists argue that the short-run Phillips curve ________ represent a usable trade-off for policymakers because ________.
A. does; prices are sticky B. does not; prices are not sticky C. does; prices are not sticky D. does not; prices are sticky