Entrepreneurs are people who ______.

Which is a plausible cause of the movement in Figure 13.1 from point 1 to point 2?

A) a change in expectations that causes a decline in the real interest rate for investments B) a decrease in expected inflation C) the economy's self-correcting mechanism D) the central bank achieves a negative value for the nominal interest rate E) none of the above

Cash may be preferred to food stamps because additional cash

A) rotates the budget constraint. B) shifts out the budget constraint at every point. C) provides a smaller opportunity set. D) allows the purchase of more food.

Arguments in favor of a laissez-faire policy concerning government's role in the economy include the

a. need for price controls b. possibility of creative destruction c. gains from trade d. contestable nature of markets e. lack of countervailing power among the economic blocs in the economy

In 1980, the top 1 percent of earners paid 19.1 percent of the federal personal income tax. By 2010, the share of this tax collected from the top 1 percent of earners

a. had declined to less than 15 percent. b. was still slightly less than 20 percent. c. had risen to approximately 25 percent. d. had risen to over 35 percent.