Which of the following would be most likely to encourage households to save a greater proportion of their income?
a. a reduction in the sales tax rate
b. an increase in the capital gains tax rate
c. an elimination of tariffs (taxes on imported goods)
d. changing to a flat income tax (with a single tax rate charged on all income)
e. changing from an income tax to a consumption tax
E
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It is possible to have a comparative advantage in producing a good or service without having an absolute advantage
Indicate whether the statement is true or false
Technological change has played a major role in increasing competition in recent years
a. True b. False
Which of the following statements is true of the world price of a good?
A) It is determined by the World Bank. B) It is determined by the intersection of the world supply and world demand curves for the good. C) It is always less than the domestic price of the good in the country that exports the good. D) It is always greater than the domestic price of the good in the country that imports the good.
In an unregulated labor market, the wage adjusts to balance labor supply and labor demand
a. True b. False Indicate whether the statement is true or false