Labor taxes may distort labor markets greatly if
a. labor supply is highly inelastic.
b. many workers choose to work 40 hours per week regardless of their earnings.
c. the number of hours many part-time workers want to work is very sensitive to the wage rate.
d. "underground" workers do not respond to changes in the wages of legal jobs because they prefer not to pay taxes.
c
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List and briefly describe the three types of unemployment
What will be an ideal response?
When production reflects consumer preferences, ________ occurs
A) productive efficiency B) allocative efficiency C) equity D) efficient central planning
An externality is:
a. always a benefit to the recipient. b. always a detriment to the recipient. c. an activity that occurs in a business which is unknown to management. d. unintended benefits or costs imposed on third parties as a result of economic activity. e. an act, caused by a firm located in this country, which has an effect on a person in a foreign country.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. The real risk-free interest rate falls, and nominal value of the domestic currency rises. c. The real risk-free interest rate rises, and nominal value of the domestic currency rises. d. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same. e. The real risk-free interest rate falls, and nominal value of the domestic currency falls.