The size of the underground economy is probably large when:
A. the cost of doing business legally is low.
B. bribes are often necessary to cut through bureaucratic red tape.
C. taxes are low.
D. All of these statements are true.
B. bribes are often necessary to cut through bureaucratic red tape.
You might also like to view...
If the number of automobile manufacturers decreases
A) the supply of automobiles increases. B) the demand for automobiles increases. C) the demand for automobiles decreases. D) the supply of automobiles decreases.
Why is it important to understand fixed exchange rates in the modern global economy?
What will be an ideal response?
The unemployment that is caused by changes in the economy, such as shifts in manufacturing techniques, increased use of computers and electronic machines, and increases in the production of services instead of goods, is called
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) natural unemployment.
A risk-neutral individual is offered a gamble that promises a gain of $1000 with probability 0.25 and a loss of $300 with probability 0.75 . Given this situation, he or she will: a. definitely take the gamble
b. definitely not take the gamble. c. definitely take the gamble if his or her income is high enough. d. take an action that cannot be determined given the information available.