What does empirical evidence suggest about the elasticity of labor supply? What does this suggest about the burden of the payroll tax in the United States?
What will be an ideal response?
Empirical studies of labor supply behavior in the United States suggest that for most of the work force, the elasticity of labor supply is close to zero. Therefore, most of the payroll tax in the United States is probably borne by workers.
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At one point along a PPF, 10 pizzas and 7 sandwiches can be produced. At another point along the same PPF, 9 pizzas and 10 sandwiches can be produced. The opportunity cost of a pizza between these points is ________ per pizza
A) 7/10 of a sandwich B) 10/7 of a sandwich C) 1/3 of a sandwich D) 3 sandwiches
An oligopoly that has two dominant strategies is called a duopoly
a. True b. False Indicate whether the statement is true or false
What makes countries with fixed exchange rates prone to speculative attacks? Why don't the central banks of these countries stop these attacks?
What will be an ideal response?
If the government of a country with a zero trade balances increases its budget deficit, then interest rates
a. rise and the trade balance moves to a surplus. b. rise and the trade balance moves to a deficit. c. fall and the trade balance moves to a surplus. d. fall and the trade balance moves to a deficit.