The PIH predicts that temporary tax cuts would
A) be spent on consumer nondurables and services.
B) be offset by an increase in the saving ratio.
C) be offset by a decrease in the saving ratio.
D) be treated the same as permanent tax cuts.
B
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In addition to covering the costs of unpredictable events, health insurance typically covers many planned expenses, such as routine checkups, annual physicals, and the cost of vaccinations. Because of this, health insurance
A) encourages overuse of health care services. B) generates an efficient quantity of health care services. C) is not accepted by most doctors and hospitals. D) discourages overuse of health care services.
Planned investment is the:
A. amount that firms decide to allocate to inventory accumulation. B. spending households engage in based on forecasted budget. C. investment that a firm decides upon as a result of temporary market changes. D. amount that firms decide to allocate to new capital resources and inventory accumulation.
If Dana can paint his house faster than Luke, a professional house painter, then:
A. Dana has a comparative advantage in house painting. B. Dana has an absolute advantage in house painting. C. Luke has a comparative advantage in house painting. D. Luke has an absolute advantage in house painting.
A firm has a constant marginal social cost of producing that equals $2Q. What is the socially efficient level of production for a firm facing an inverse demand P = 60 ? 2Q?
A. 15 B. 10 C. 20 D. 25