The figure above shows the U.S. production function. How would an increase in income taxes be shown in the figure?
A) a movement from point C to point B
B) a movement from point A to point B
C) an upward shift or rotation of the production function
D) a downward shift or rotation of the production function
E) None of the above because the effects of an increase in taxes cannot be shown in the figure.
A
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Which of the following statements explains the vicious circle of poverty?
a. By investing in education and infrastructure at the same time, the country can overcome the problems of poverty. b. Poverty arises out of the lack of investment, but countries cannot invest because they are poor. c. A nation can shift its production possibilities curve inward by shifting more resources into the production of capital goods. d. A nation can shift its production possibilities curve outward by shifting more resources into the production of consumer goods. e. There are dual economies in the world: Some are meant to be rich and others are meant to be poor.
Virtual Currency Unit 3 (VCU3) poses a __________ risk to nations in which is it used because ___________________________
a. Low; it can be spent only in virtual worlds. b. Low; when converted into legal tender, it has no effect on a nation's M2 money supply or monetary base. c. Low; it does not have the potential to raise a nation's price level or threaten the nation's payment system. d. All of the above are true.
According to both the equation of exchange and the quantity theory of money
A. an increase in the money supply will decrease real Gross Domestic Product (GDP). B. an increase in the money supply will increase real Gross Domestic Product (GDP). C. a decrease in the money supply will decrease the velocity of money. D. a decrease in the money supply will decrease the price level.
Which legal claim comes with voting rights?
A. common stock B. preferred stock C. bond D. debt