The greater the tax wedge, the ________ the amount of employment and the ________ potential GDP
A) larger; smaller
B) smaller; smaller
C) smaller; larger
D) larger; larger
E) None of the above because the tax wedge does not affect employment or potential GDP.
B
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Which antitrust act prohibits exclusive dealing, tying contracts, stock acquisitions, and interlocking directorates?
a. Sherman Antitrust Act of 1890. b. Clayton Act of 1914. c. Federal Trade Commission Act of 1914. d. Robinson-Patman Act of 1936. e. Cell-Kefauver Act of 1950.
"If the cost of college tuition goes up, then fewer people will go to college." This statement:
A. is always true. B. is true only if for some students the cost of college after the tuition increase exceeds the benefits of attending college. C. would never be true. D. ignores the opportunity costs of attending college.
In competitive markets, a surplus or shortage will:
A. Never exist because the markets are always at equilibrium B. Cause changes in the quantities demanded and supplied that tend to eliminate the surplus or shortage C. Cause shifts in the demand and supply curves that tend to eliminate the surplus or shortage D. Cause changes in the quantities demanded and supplied that tend to intensify the surplus or shortage
During an expansion, automatic stabilizers cause the federal deficit to
A. increase. B. either increase or decrease. C. remain unchanged. D. decrease.