With respect to the demand side, the Keynesian model
a. includes monetary factors.
b. provides a role for government spending and taxes.
c. includes autonomous investment.
d. All of the above
e. None of the above
D
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The clear winners from the quota are the ________, and the losers are the______. 
A. domestic producers; domestic consumers B. domestic consumers; domestic producers C. government; domestic consumers D. importers; domestic producers
A welfare recipient receives $10,000 in benefits when he does not work but receives an income of $15,000 when he works part-time and earns $6,000 in wages. What is the implicit marginal tax rate the recipient faces?
A. 15.5 percent. B. 0 percent. C. 16.6 percent. D. 100 percent.
Describe how the moral hazard associated with welfare benefits can be reduced, and tell what other problems this creates.
What will be an ideal response?
In 2013, XYZ Corporation had total earnings of $500 million and XYZ retained 20 percent of its earnings for future investments. If the price of a share of XYZ stock is $70 and if 100 million shares of its stock is outstanding, then what is the price-earnings ratio?
a. 6.25 b. 11.2 c. 14.0 d. 17.5