Supply-side tax cuts are designed to
A. Shift the Phillips curve to the right.
B. Increase the equity of the tax system.
C. Remove as much disposable income as possible from the economy.
D. Reduce marginal tax rates.
Answer: D
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Describe the Coase theorem and explain why it is significant in the analysis of externatility problems.
What will be an ideal response?
In the money market, a decrease in money demand will:
A) result in a rightward shift in the money demand curve increasing interest rates. B) result in a rightward shift in the money demand curve decreasing interest rates. C) result in a leftward shift in the money demand curve increasing interest rates. D) result in a leftward shift in the money demand curve decreasing interest rates.
In order to get children to eat all the food they've served, regardless of their hunger, mothers have relied for decades on the argument that "there are starving children in Africa." Assuming the presence of hungry children on another continent does not affect the utility you derive from the food on your plate, if you choose to force down food based on this argument, you are:
A. acting rationally. B. caring more about starving children than your own well-being. C. acting irrationally. D. doing your part in the fight against world hunger.
A consequence of the economic problem of scarcity is that
A. There is never too much of any good or service produced. B. The production possibilities curve is bowed outward. C. Choices have to be made about how resources are used. D. The production of goods and services must be controlled by the government.