economic analysis indicates that high tax rates will
What will be an ideal response?
reduce productive activity
retard capital formation
promote wasteful use of resources
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The fungibility of money means that
A. the categories people create to organize their expenditures are meaningless in financial terms. B. people often create false distinctions between categories of debt. C. thinking large, one-time expenses should be paid off over a period of time, while everyday expenses should come out of your checking account, is irrational. D. All of these statements are true.
Tradable allowances are like quotas in that they both:
A. are efficient. B. reduce the quantity bought and sold to the efficient level. C. maximize surplus. D. All of these statements are true.
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table. ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50A risk-neutral manager will prefer project:
A. A. B. B. C. C. D. D.
A rise in the price level because of an increase in the money wage rate...
What will be an ideal response?