A substantial increase in marginal tax rates will most likely encourage individuals to choose:
a. to work more overtime
b. to invest more.
c. to spend more of their scarce resources looking for tax shelters.
d. none of the above.
c
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Property rights allowing individuals to own goods, services, and factors of production are MOST important in
a. socialistic economies. b. planned economies. c. capitalistic economies. d. command economies.
If devaluation does not improve the BOT, but only the BOP, this implies that
A) the capital account is in deficit. B) the current account is in surplus. C) the improvement comes in the capital account. D) Both B and C.
One method used to control the ability of firms to capture monopoly profit in the United States is through
a. government purchase of products produced by monopolists. b. government distribution of a monopolist's excess production. c. enforcement of antitrust laws. d. regulation of firms in highly competitive markets.
In the Keynesian view of macroeconomic equilibrium during a depression, aggregate demand and aggregate supply intersect
A. in the horizontal segment of the aggregate supply curve. B. in the horizontal segment of the aggregate demand curve. C. in an upward-sloping segment of the aggregate supply curve. D. in the vertical segment of the aggregate supply curve.