In which case will the government collect more tax revenue?
A. 5% tax rate and $200,000 average income
B. 10% tax rate and $120,000 average income
C. 50% tax rate and $50,000 average income
D. 70% tax rate and $20,000 average income
Answer: C
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Adam got a job in a multinational company. He was told during the orientation session that he will not be terminated for poor performance during the first six months of his work
Adam immediately decided to put minimum effort into the job during these months. His behavior is an example of ________. A) a positive externality B) moral hazard C) the prisoners dilemma D) the free-rider problem
In the fooling model's AD/SAS/LAS diagram, short-run equilibria to the left of the LAS curve require the price level to be
A) above what workers expect. B) above what firms expect. C) below what workers expect. D) below what firms expect.
One of the most important characteristics of information is that it is essentially a private good.
Answer the following statement true (T) or false (F)
Refer to the diagram. Realized economic growth is best represented by a:
A. move from Z to X along AB.
B. move from X on AB to Y on CD.
C. shift in the production possibilities curve from CD to AB.
D. move from X to Z along AB.