A dollar reduction in benefits as a result of a dollar income from working is a
A. 50% tax rate.
B. 75% tax rate.
C. 22.5% tax rate.
D. 100% tax rate.
D. 100% tax rate.
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If the government reduced the minimum wage and pursued expansionary monetary policy, then in the long run
a. both the unemployment rate and the inflation rate would be higher. b. both the unemployment rate and the inflation rate would be lower. c. the unemployment rate would be higher and the inflation rate would be lower. d. the unemployment rate would be lower and the inflation rate would be higher.
A measure of the average price of a given class of goods or services relative to the price of the same goods and services in a base year is called a:
A. real quantity. B. real price. C. rate of inflation. D. price index.
Economists assume people behave rationally, which means that people
A) never make a mistake. B) do not intentionally make decisions that make themselves worse off. C) have the necessary information to always make correct decisions. D) always understand the consequences of their decisions.
An increase in quantity demanded is caused by
A. a decrease in the price of the good. B. a decrease in the price of a complement. C. an increase in income. D. a change in expectations about price in the future.