Which of the following is not a form of crowding out?
a. Lower household spending due to higher interest rates
b. Lower business spending due to higher interest rates
c. Lower net exports due to higher interest rates
d. Lower private spending due to higher taxes
e. Greater output and employment in the short run
d
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If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable if:
a. it increases revenue more than costs or reduces costs more than revenue b. it decreases some costs more than it increases others (assuming revenues remain constant) c. it increases some revenues more than it decreases others (assuming costs remain constant) d. all of the above e. b and c only
An increase in the stock of capital in a society is called capital deepening
a. True b. False Indicate whether the statement is true or false
A tax system based on the ability-to-pay principle claims that all citizens should
a. pay taxes based on the benefits they receive from government services. b. pay the same amount in taxes. c. pay taxes based on consumption rather than income. d. make an equal sacrifice.
In 2001, a prolonged period of deceased investment and production preceded a ______.
a. a depression b. a recession c. an expansion d. a recovery