Okun's Law states that the ________ decreases about 1 percentage point for every 3% increase in ________.
A. GDP; the inflation rate
B. inflation rate; the unemployment rate
C. inflation rate; GDP
D. unemployment rate; GDP
Answer: D
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Compare a football quarterback’s daily and yearly completed pass percentage to a business’s marginal and average product.
What will be an ideal response?
If the CPI in 2004 is 200, and in 2005 the CPI is 180, the rate of inflation from 2004 to 2005 is
A) 20%. B) 10%. C) 0%. D) -10%.
For a linear and downward sloping demand curve, when the consumer has to pay a positive price for the good, the value to the consumer is a
A. rectangle. B. triangle. C. four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the supply curve. D. four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the demand curve.
Which of the following statements best represents the opinion of many economists regarding the impact that changes in tax laws have had on recent changes in income inequality in the United States?
A) Reductions in income tax rates have favored high-income individuals more than low-income individuals. As a result, reductions in federal income tax rates have led to more income inequality. B) Reductions in income tax rates probably have had little impact on the distribution of income. C) Reductions in income tax rates have created greater incentives for low-income individuals to work, save, and invest. As a result, reductions in federal income tax rates have led to less income inequality. D) Reductions in income tax rates have been offset by increases in corporate income tax rates and payroll taxes. As a result, greater income inequality in the 1990s has been followed by a more equal distribution of income since 2001.