The incentive effect refers to how much a person will change his or her:
A. wage rate in response to a change in productivity.
B. hours worked in response to a change in the wage rate.
C. wage rate in response to a change in the tax rate on earnings.
D. quantity demanded of a taxed good in response to a change in the tax rate.
Answer: B
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Which of the following are not considered part of government purchases?
A) a tank purchased by the federal government B) teachers' salaries paid by a local government C) a bridge purchased by the state government D) welfare benefits
The income distribution in less-developed nations tends to be
a. more uneven than in developed economies b. less uneven than in developed economies c. similar to that in developed economies d. impossible to calculate e. not comparable because tax structures differ among countries
In an open economy (as compared to a closed one, without international trade)
A. monetary policy is weaker, fiscal policy is more powerful B. fiscal policy is weaker, monetary policy is more powerful C. both monetary and fiscal policy are more powerful D. both monetary and fiscal policy are weaker
The only source of economic growth is technological advancement.
Answer the following statement true (T) or false (F)