A decrease in the price of VCRs will increase demand for video cassettes.
Answer the following statement true (T) or false (F)
True
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Which of the following most accurately indicates the political incentive to spend and/or tax?
a. Politicians will find tax increases more attractive than increases in government expenditures. b. Voters will generally support higher taxes in order to eliminate budget deficits. c. Politicians are rewarded for raising taxes and punished for providing programs that benefit their constituents. d. Politicians are rewarded for providing programs that benefit their constituents and punished for raising taxes.
Which of the following is an example of an entrepreneur?
a. Steve Jobs and Steve Wozniak starting Apple b. Jeff Bezos starting Amazon c. The launch of the social media giant – Facebook d. All of the above are examples of successful entrepreneurial endeavors.
The basic idea behind a negative income tax is to
A. help local government agencies deliver more services to the poor. B. increase the in-kind income of the poor. C. help the poor get job skills. D. help the poor without destroying incentives to work.
Businesses may reduce their investment spending following expansionary fiscal policy because:
A. as the economy's growth rate increases, profits rise without the need for new investments. B. profits fall as expansionary fiscal policy slows the economy. C. increased government spending will drive up interest rates. D. the government will take advantage of all the good investment opportunities.