Social Security taxes are paid by
A. neither employers nor employees.
B. both employers and employees.
C. employers only.
D. employees only.
Answer: B
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Tight monetary policy raises the real interest rate, which ________ the demand for dollars, ________ the supply of dollars, and ________ the equilibrium value of the dollar.
A. decreases; decreases; decreases B. increases; increases; increases C. decreases; increases; increases D. increases; decreases; increases
Economic models do not reflect the full complexity of reality and instead are based on:
A. the fallacy of composition. B. value judgments. C. purposeful simplifications. D. trade-offs.
Who selects the board of directors of a corporation?
A) the state where the corporation is chartered B) employees C) stockholders D) managers
Which of the following is likely to reduce the total efficiency units of labor in an economy?
A) A decrease in the price of capital B) A recession that lowers aggregate demand C) An increase in the price level D) An earthquake that kills several people