If official U.S. poverty statistics included in-kind transfer payments the:
A. poverty rate would be close to zero.
B. poverty rate would be lower.
C. government deficit would be lower.
D. top 10 percent of those in the income distribution would be wealthier.
Answer: B
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Assume that the full-employment level of output is $1,000 and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $1,100 and, at the price level of 100, current aggregate demand is $1,200. If the government moves the economy back to the full-employment level of output by reducing government purchases by $50, then the expenditures multiplier equals
A. 4. B. 5. C. 2. D. 10.
Seasonal unemployment occurs because of: a. changes in the business cycle
b. the periodic nature of some jobs. c. workers moving between jobs. d. workers not getting jobs according to their educational qualifications.
What is the overall longrun impact of labor immigration on returns to factors of production?
a. Returns to labor will increase and returns to capital will decrease. b. Returns to labor and returns to capital will both increase. c. Both relative and absolute returns to factors of production will not change. d. Both relative and absolute returns to factors of production will increase.
The general formula used for calculating the net national loss from a trade barrier as a percentage of gross domestic product (GDP) may fail to account for
A. the rent-seeking costs of local firms. B. the production effect of the trade barrier. C. the government revenue generated from the trade barrier. D. the consumption effect of the trade barrier.