The concept that a decline in tax rates and other incentives will induce individuals and firms to increase productivity is typically referred to as
A. supply-side economics.
B. demand-side economics.
C. Keynesian economics.
D. Ricardian equivalence.
Answer: A
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If the marginal rate of return expected from a purchase of equipment is greater than the market interest rate, the firm should
a. not purchase the equipment b. purchase the equipment c. either purchase or not purchase the equipment, depending on the marginal resource cost d. inform stockholders that the company expects a decrease in earnings from the purchase e. seek government assistance in raising market interest rates
The merger of craft and industrial unions occurred in 1955 with the creation of the AFL-CIO
Indicate whether the statement is true or false
When exchange rates are not in alignment, traders see opportunities for ___ , which move the rates ___ equilibrium.
a. speculation; away from b. arbitrage; toward c. investments; away from d. liquidation; toward
Maggie buys peanut butter and jelly, both of which are normal goods. When the price of peanut butter rises, the income effect induces Maggie to buy ________ peanut butter and ________ jelly.
a. less, less b. more, more c. more, less d. less, more