In designing a tax system, policymakers have two objectives that are often conflicting. They are
a. maximizing revenue and minimizing costs to taxpayers.
b. efficiency and minimizing costs to taxpayers.
c. efficiency and equity.
d. maximizing revenue and reducing the national debt.
c
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Based on the data in the table above, the efficient level of output equals
A) 550 units. B) 600 units. C) 650 units. D) 700 units.
Suppose the required reserve ratio is 8% and that banks hold no excess reserves and the public does not change its currency holdings. If the Fed sells $5 million worth of securities, what happens to the amount of deposits in the banking system?
What will be an ideal response?
Investment goods are counted in GDP because they are
a. intermediate goods. b. purchased in their final form. c. usually exported as foreign investment. d. deductible business expenses.
When factors of production are not fixed (as in the long run) and labor immigrates, capital will:
a. remain fixed because capital is never mobile. b. increase in the capitalintensive industry. c. move to the higher productivity use in the labor intensive industry until returns are again equalized. d. become idled as owners of capital seek more profitable opportunities.