The Reagan tax cuts of the 1980s
a. had not impact on the budget deficit.
b. decreased the budget deficit.
c. increased the budget deficit.
d. initially decreased the deficit but later increased it.
c
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The Cost-Benefit Principle indicates that an action should be taken if, and only if:
A. its costs are small. B. its benefits are a result of its costs. C. its benefits exceed its costs. D. its benefits are positive.
What is the primary difference between a mixed strategy and a pure strategy?
A) Pure strategies are always dominated strategies. B) Mixed strategies call for randomizing over possible actions, pure strategies do not. C) Pure strategies are much more common than mixed strategies. D) Mixed strategies are not optimal whereas pure strategies are.
The output effect of a change in the wage rate on a firm's demand for labor input will be greater:
a. the larger the share of labor costs in total costs and the greater the price elasticity of demand for output. b. the larger the share of labor costs in total costs and the smaller the price elasticity of demand for output. c. the larger the share of labor costs in total costs and the higher the quantity demanded. d. the smaller the possibilities of substituting capital for labor.
Which of the following statements is true?
a. The United States today comes closer to the socialist form of economic organization than it does capitalism. b. When central planners set prices above equilibrium for goods and services they create shortages. c. According to Karl Marx, under capitalism, workers would be exploited and would revolt against the owners of capital. d. Adam Smith argued that government's role in society would be to do absolutely nothing.