Income tax collections:
A. fall during periods of prosperity, thus increase federal budget deficits.
B. rise during periods of prosperity, thus reduce federal budget deficits.
C. fall during recessions, thus increase the problem of unemployment.
D. rise during recessions, thus increase the problem of unemployment.
Answer: B
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During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee. Based on this, we know definitively that
A) Africa, Asia, and Latin America have comparative advantage in coffee production. B) the United States has absolute advantage in coffee production. C) Africa, Asia, and Latin America have absolute advantage in coffee production. D) the United States has comparative advantage in coffee production.
If New York City expects that an increase in bus fares will raise mass transit revenues, it must think that the demand for bus travel is:
a. elastic. b. unit elastic. c. inelastic. d. perfectly inelastic. e. 10.
Which statement is true?
A. A person earning $100,000 pays $10,000 in payroll tax. B. Most taxpayers pay more in payroll tax than in personal income tax. C. The Medicare tax rate is 6.2%. D. There is no such thing as a regressive tax.
Which of the following were not actions taken by the Federal Reserve in order to stimulate the economy during the recession of 2007–2009?
A. Decreasing the discount rate B. Suspending trading on the major stock exchanges C. Massive lending to banks D. Open-market purchases of assets other than Treasury bills