Suppose the country of Maverick has specialized in the production of a good but has not yet entered into trade. At this point in time, Maverick has
A. Shifted its production possibilities curve outward.
B. Moved to a level of consumption outside its production possibilities curve.
C. Moved along its existing production possibilities curve.
D. Moved to a level of production outside its production possibilities curve.
Answer: C
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Other things equal, an increase in the tax on dividends is likely to result in all of the following EXCEPT:
A) higher expected return on bonds relative to stocks B) increased demand for bonds C) lower interest rates D) higher interest rates
The tolerance of bribe-taking by government officials
A) reduces economic uncertainty because all investors are aware of the practice. B) reduces economic efficiency because rules governing property rights are not regularly enforced. C) reduces government expenditures because public employees can be paid less. D) reduces the need for government to impose taxes on poor people.
The Bureau of Labor Statistics measures unemployment by surveying:
A. a sample of about 60,000 households every month. B. every business at least once a year. C. every household at least once a year. D. a sample of about 60,000 employers every month.
A list of automatic stabilizers in the United States economy would NOT include
A. income taxes. B. unemployment compensation. C. agricultural support payments. D. defense spending.