The size of the underground economy would tend to increase if the government of a country
A) decreased government regulations on businesses.
B) increased income tax rates.
C) legalized prostitution.
D) legalized marijuana.
Answer: B
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Which of the following best describes the three fundamental economic questions?
a. hat to produce, when to produce, and where to produce. b. What time to produce, what place to produce, and how to produce. c. What to produce, when to produce, and for whom to produce d. What to produce, how to produce, and for whom to produce.
Consider a world with two countries and two goods. Under which of the following conditions does comparative advantage NOT exist?
A. One country has more productive resources or inputs than another country. B. The opportunity cost of producing each good is the same in each country. C. One country has an absolute advantage in producing one good while the other country has an absolute advantage in producing the other good. D. One country can produce both goods more cheaply than the other country.
Differences in pay between men and women in the United States could be at least partially explained by all of the following EXCEPT
A. large differences in education levels between men and women. B. interruptions in women's careers are more common than for men. C. gender discrimination. D. occupational choices in which women choose work with greater flexibility but lower pay.
Your opportunity cost of attending a lecture on the number of brain cells lost by binge-watching episodes of Here Comes Honey Boo Boo is
A) zero, since you already know that binge-watching will kill all of your brain cells. B) the price of the ticket for the lecture. C) the value of attending a meditation class, which is your next-best alternative. D) the total value of all other options you could have chosen instead of going to the lecture.