A tax is progressive if the ratio of taxes to income rises as income rises
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that labor is the only productive resource needed. Scotland has a comparative advantage in producing firewood, while Iceland has a comparative advantage in producing wool. If the two nations trade with each other,
A. Scotland should export wool and Iceland should export firewood. B. Scotland should export both wool and firewood. C. Scotland should export firewood and Iceland should export wool. D. Iceland should export both wool and firewood.
An agreement that gives one party the right to buy or sell from or to •- another party a specified quantity of currency at a specified price would be included in which of the following transactions?
a. an option b. a futures contract c. a forward contract d. a swap
Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. California kiwifruit growers had an asymmetric information problem because potential buyers:
A. do not know how much kiwifruit they will need. B. could not tell what the price of the kiwifruit will be. C. could not tell if a kiwifruit was sweet or sour before tasting it. D. All of these
Which of the following events will cause a reduction in equilibrium output?
A) an increase in the marginal propensity to save B) an increase in taxes C) a reduction in the marginal propensity to consume D) all of the above E) none of the above