If taxes were a lump-sum amount, then the magnitude of the government spending multiplier ________ it would be if taxes depend on income.
A. is equal to what
B. is larger than
C. is smaller than
D. could be either larger than or smaller than
Answer: B
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The problem of scarcity
A. has been “cooked up” by disenchanted anticapitalists. B. exists because resources are limited relative to wants. C. is solved by promoting economic growth. D. is caused by artificially high prices.
The HPAE "economic miracle" illustrates a clear case in which
A) exports and growth were positively related. B) exports were promoted by successful economic growth. C) economic growth was determined by successful export promotion. D) trade policy dominated other considerations in promoting economic growth. E) import substitution enhanced economic development.
Natasha is going to buy a risky asset that has an expected value of $62, which yields an expected utility of 146. Her risk premium is $19. What is her certainty equivalent?
A) $19 B) $43 C) $81 D) $208
The difference between a price increase and a decrease in income is that:
A. a decrease in income does not affect the slope of the budget line, while an increase in price does change the slope. B. a price increase will increase real income, while a decrease in income will increase real income. C. a price increase does not affect the consumption of other goods, while a decrease in income does. D. None of the statements is correct.