If a “liberal” wanted to increase aggregate demand, which of the following would he or she tend to favor?
A. An increase in government spending, because it will increase the size of the public sector.
B. A decrease in transfer payments, because it keeps the public sector small.
C. An increase in transfer payments, because it has a larger multiplier than tax changes.
D. A decrease in taxes, because it makes the public sector smaller.
Answer: A
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Markets that require workers with similar human capital:
A. vie for the same workers, who can interchange one type of employment for another. B. often have similar wages, because they employ similar workers. C. are more connected than others. D. All of these statements are true.
A corporate merger occurs when: a. two formerly separate firms combine to become one single firm
b. one firm purchases another firm. c. two formerly separate firms decide to charge the same price for a product. d. one firm follows the exact actions of another firm.
All of the following are income in kind EXCEPT
A) government provided housing. B) government provided education. C) tips received by a waitress. D) goods produced in the home.
Refer to the information provided in Figure 4.5 below to answer the question(s) that follow.
Figure 4.5Refer to Figure 4.5. Assume that initially there is free trade. If the United States then imposes a $10.00 tariff per CD-Rom drive on imported CD-Rom drives,
A. U.S. imports of CD-Rom drives will increase by 3 million. B. the quantity of CD-Rom drives supplied by U.S. firms will increase by 3 million. C. the price of CD-Rom drives in the United States will decrease to $5. D. the quantity of CD-Rom drives demanded will be reduced by 6 million.