A unit tax
A) is based on the value of the good being sold.
B) is a constant tax assessed on each unit of a good sold.
C) is the primary tax studied in dynamic tax analysis.
D) does not influence equilibrium price and quantity.
B
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A corporation is considered a multinational ________ if ________
A) parent; it owns more than 10% of a foreign firm B) parent; more than 10% of its stock is held by a foreign company C) child; more than 10% of its stock is held by a foreign company D) child; more than 50% of its stock is held by a foreign company E) monopolist; it owns more than 50% of a foreign firm
On the evening news you hear of a scientific study that directly links premature births to cigarette smoking. This is an example of
A) direct-model evidence. B) informed voter-model evidence. C) structural-model evidence. D) reduced-form evidence.
The conduct of monetary policy is the responsibility of:
a. commercial banks. b. the U.S. Treasury. c. the Federal Reserve System. d. the Congress and the president.
Which of the following is false about a liquidity trap situation: a. Quantitative easing might be a more effective strategy to stimulate the economy than buying short term government securities. b. The Fed can lower both short term and long term interest rates by using quantitative easing. c. The Fed cannot easily reduce the fed funds interest rate
d. Quantitative easing may be able to affect long term interest rates even when the Fed is unable to appreciably lower short term interest rates.