If the marginal tax rate is too high, it can cause all of the following except
A. Government tax receipts to decline.
B. Work effort to decrease.
C. Businesses to produce more.
D. The rate of saving to decline.
Answer: C
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Scarcity means that
A) what we can produce with our resources is greater than our material wants. B) resources are unlimited. C) wants are greater than what we can produce with our resources. D) governments must make up for shortages in resources. E) choices made in self-interest cannot be the same as those made in the social interest.
To close an inflationary gap through fiscal policy, the government should
a. decrease government spending in order to reduce aggregate demand. b. increase government spending and taxes in order to both increase aggregate demand and aggregate supply. c. decrease government spending in order to increase aggregate supply. d. reduce taxes in order to stimulate investment, and thus increase aggregate supply.
In a market economy, the money incomes of individuals depend primarily upon:
A. government policies in setting wages and interest rates. B. the amount of college education the individuals have. C. the value and amounts of the productive resources the individuals possess. D. who you know and how well you know them.
A physical book that sells new for $200 will typically sell as an e-book for around
A. $200. B. $50. C. $100. D. $150.