Which of the following is a short-run adjustment?
A. BMW constructs a new assembly plant in South Carolina.
B. A local bakery hires two additional bakers.
C. Six new firms enter the plastics industry.
D. The number of farms in the United States declines by 5 percent.
Answer: B
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An important reason why Ricardian equivalence may fail is if
A) borrowing and lending are done through intermediaries. B) government debt incurred today may not be paid off until after some current consumers are deceased. C) state and local governments also engage in debt finance. D) some consumers are borrowers, while other consumers are lenders.
If we measure the income elasticity of a good as ?1.8, this means this good is a(n):
a. luxury good. b. substitute good. c. complementary good. d. inferior good. e. good from the food group.
A person's average tax rate equals her
a. tax obligation divided by her marginal tax rate. b. increase in taxes if her income were to rise by $1. c. tax obligation divided by her income. d. increase in taxes if her marginal tax rate were to rise 1percent.
Marc is a high school graduate and currently works as a corrections officer at a local prison. He would like to go back to school to train to become a police officer someday. The best way to describe Marc is to say he is:
A. underemployed. B. a discouraged worker. C. unemployed. D. employed.