Economists Novy-Marx and Rauh contend that if Boston wanted to adequately fund its pension systems for its public workers, it would have to put on
A. a one-time tax of nearly $310,000 per household.
B. an annual tax of nearly $31,000 per household.
C. a one-time tax of nearly $31,000 per household.
D. an annual tax of only $31 per household.
Answer: C
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Large differences in inflation rates among countries are almost always the result of large differences in
A) productivity. B) real income growth. C) the growth rates of real money demand. D) the growth rates of nominal money supplies.
Suppose a previously competitive labor market turns into a monopsony. The labor supply curve faced by the new monopsonist is
a. above the labor supply curve under perfect competition b. the market supply curve of labor c. below the labor supply curve under perfect competition d. changed because workers are now more willing to supply labor e. perfectly horizontal
Consider a two-country, two-commodity model. Each country has an increasing-cost production-possibility curve. In this model the amounts of the goods that are produced in a country in the no-trade situation are determined by:
A. the factor endowments in the economy. B. total income in the economy. C. the relative prices of the goods. D. technology differences between the industries.
During 2003, the Federal Reserve began to openly discuss deflation. Their comments suggested they
A. knew it was something to watch because of the Japanese experience of the 1990s, but did not alter policy significantly to combat it. B. were neutral about whether deflation would be a good thing. C. were enthusiastic about the possibility. D. knew it would be a disaster, so they immediately cut the target federal funds rate by 5 percentage points to avoid the possibility.