Which of the following policies encourages economic growth?
A) increased taxes on income and business profits
B) limiting the years people spend in education so that they can start productive work
C) reduction of government support of higher education
D) creation of tax free savings accounts
E) high tariffs and strict import quotas on foreign-made products
D
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Economist's can justify supporting education through taxation on which of the following grounds?
A) Education generates spillover benefits. B) Low-income people could not otherwise afford education. C) Most economists are educators. D) Free education extends equal opportunity to all. E) Public education is more efficient than allowing education to be provided by the market.
An industry is made up of 8 firms with the following percent market shares: 29, 20, 11, 10, 9, 8, 7, 6. The firms with 8 and 7 percent market share are proposing to merge. What is the new Herfindahl-Hirschman index if the merger takes place?
A) 225 B) 1462 C) 1692 D) 1804
Assume that the Federal Reserve replaces the money stock with the interest rate as an intermediate target. Then,
a. the range for the target interest rate would be chosen to hit the inflation rate, unemployment rate, and growth rate of the economy. b. if the Treasury bill rate fell temporarily below the target range, the Open Market Desk would sell securities in the open market until the Treasury bill rate rose to the target range. c. if the Treasury bill rate rose above the target range, the Open Market Desk would purchase Treasury bills or other government securities. d. All of the above
Scarcity is a problem:
A. measured by the amount of goods available. B. of the poor, but not the rich. C. because human wants are unlimited while resources are limited. D. only in industrialized economies.