Economic growth is likely to be faster when
a. higher tax rates are imposed on high income individuals in order to provide greater cash payments to the poor.
b. domestic markets are opened to foreign sellers and foreign investors.
c. the supply of money is increased rapidly so individuals have more money to spend.
d. dramatic changes in political and legal institutions occur often.
Answer: b. domestic markets are opened to foreign sellers and foreign investors.
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Which of the following organizations keeps track of all interstate commodity shipments by state of origin and state of destination in the United States?
A) Bureau of Trade Statistics B) Bureau of Transportation Statistics C) Bureau for Foreign Assistance D) Bureau of the Treasury Department
Which of the following would explain wage rigidities?
a. Inflexible long-term contracts b. Inflation c. The liquidity of financial assets d. The reluctance of firms to lay off workers e. High worker productivity
Which best describes the lower endpoint of a confidence interval?
A. point estimate plus margin of error B. point estimate C. margin of error D. point estimate minus margin of error
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. If you do not use the frequent-flyer coupon to fly to Miami, should you go to Miami?
A. No, your benefit is less than your cost. B. Yes, your benefit is more than your cost. C. Yes, your benefit is equal to your cost. D. No, because there are no benefits in the trip.