In Figure 33.4, what is the burden of the tax on workers?
A. The wage reduction from W3 to W2.
B. The wage reduction from W3 to W1.
C. The wage reduction from W5 to W2.
D. The wage reduction from W5 to W3.
Answer: A
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Corporations receive funds when their stock is sold in the primary market. Why do corporations pay attention to what is happening to their stock in the secondary market?
What will be an ideal response?
Let the marginal leakage rate be 0.5 while the marginal propensity to consume is 0.8. Then a $50 million reduction in autonomous taxes will cause autonomous consumption to ________ and equilibrium income to ________
A) fall by $50 billion; fall by $100 billion B) rise by $50 billion; rise by $100 billion C) fall by $40 billion; fall by $200 billion D) rise by $40 billion; rise by $80 billion
The U.S. economy experiences a public debt when the value of its annual deficits exceeds the value of its annual surpluses over an extended period of time
Indicate whether the statement is true or false
The results of human action but not of human design
a. have traditionally led to anarchy b. can easily be converted into collective decision-making c. have frequently evolved over time into self-enforcing social institutions d. is in actually the result of planned education funding