Interest provides an incentive for households to defer current consumption
a. True
b. False
A
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Optimal decisions take into account
A. the resources available. B. the alternatives that were not available to choose. C. the gratification produced by an outcome. D. the effect on the distribution of income. E. the outcomes that are not feasible.
Economists play an important role in the complex debates over tax policy by
a. identifying efficiency as the most important goal of tax policy. b. identifying equity as the most important goal of tax policy. c. shedding light on the tradeoff between efficiency and equity in tax policy. d. None of the above is correct.
Which of the following correctly identifies a characteristic of structural equations?
A. A structural equation should contain equal number of dependent and independent variables. B. A structural equation should contain equal number of endogenous and exogenous variables. C. A structural equation should have a behavioral, ceteris paribus interpretation on its own. D. A structural equation should not contain structural errors.
A proprietorship is
A. a corporation that is taxed like an individual. B. a business owned by one individual who makes all of the decisions. C. two or more individuals in business together. D. a government-owned franchise.