Megan’s country has neglected its infrastructure. What impact will this most likely have on economic growth?
a. It will encourage economic growth.
b. It will hinder economic growth.
c. It will have little impact on economic growth.
d. Its impact on economic growth depends on the size of the economy.
b. It will hinder economic growth.
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A tax on the wages paid to an employee is called the:
A. payroll tax. B. personal income tax. C. corporate income tax. D. excise tax.
Suppose the demand curve and the supply curve in a market are both linear. To begin, there was a $5 tax per unit, and the $5 tax resulted in a deadweight loss of $1,500 . Now, the tax per unit is higher, with the higher tax resulting in a deadweight loss of $6,000 . What is the amount of the new tax per unit?
When a country specializes in the production of a good that is relatively cheaper for it to produce than other goods, it is because of:
A) the foreign-trade multiplier. B) comparative advantage. C) nontariff barriers. D) absolute advantage.
Prices for fresh fruit, vegetables and other food products are examples of:
A. custom prices. B. auction prices. C. sticky prices. D. temporary prices.