A decrease in the interest rate will cause
A. the investment function to shift up.
B. the investment function to shift down.
C. planned investment spending to decrease.
D. planned investment spending to increase.
Answer: D
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A tax structure is called progressive when
A. the average tax rate on low-income groups exceeds the tax rate of high-income groups. B. the average tax rate decreases if income decreases. C. the average tax rate is constant, but the absolute amount of taxes paid increases with income increases. D. high-income groups pay more taxes absolutely than do low-income groups.
Which of the following is an example of "pork barrel spending"?
A) Funds spent by the federal government in repairing national highways B) Funds spent by the Fed to bail out large financial institutions during recessions C) Government funds spent by a senator for building fountains in his home state D) Funds spent by the government in providing unemployment insurance
Large firms sometimes have manufacturing and development that take place in multiple states. Should they be subject to taxation in every state in which they do business?
What will be an ideal response?
Suppose two fishing boats are both run by profit-maximizing captains. Bob's boat cost him $500,000 and Debra's boat cost her $400,000 . If they both have identical boats and their labor and fuel costs are the same, who will catch more fish?
a. Bob will catch 20 percent fewer fish b. Debra will catch 20 percent fewer fish c. they will catch the same d. Bob will catch 25 percent more fish e. Debra will catch 25 percent more fish