Which of the following economies are most free?
What will be an ideal response?
Hong Kong and Singapore
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Job rationing occurs if
A) the Lucas wedge is positive. B) the minimum wage is set below the equilibrium wage rate. C) an efficiency wage is set below the equilibrium wage rate. D) the real wage rate is pushed above the equilibrium wage rate. E) a union wage is set below the equilibrium wage rate.
Which of the following will result in an upward rotation of the consumption function?
a. A decrease in the proportional tax rate on income b. An increase in consumer income c. An increase in the flat tax rate d. A decrease in the flat tax rate
In January 2009, the President submitted a bill to Congress that was designed to stimulate the economy and increase employment. The legislation was passed in March 2009, and the spending occurred from June 2009 to September 2010. Consequently
A. the full impact of the bill would be felt by the end of September 2010. B. the full impact of the bill would be felt by March 2009 because people anticipated the effects of the increased spending. C. the economy should have been at full employment by December 2009. D. the full effect of the spending would be felt some time after September 2010 because the full multiplier effects could not be felt until all the increase in spending took place.
Refer to the table. The exchange rate is:
Answer the question on the basis of the following table, which indicates the dollar price of libras, the currency used in the hypothetical nation of Libra. Assume that a system of freely floating exchange rates is in place.
A. 4 libras for one dollar.
B. 0.25 libra for one dollar.
C. 0.40 libra for one dollar.
D. 3 libras for one dollar.