When the government levies a $100 million tax on people's income and puts the $100 million back into the economy in the form of a spending program, such as new interstate highway construction, the:
a. level of real GDP expands by $100 million.
b. tax, then, generates a $100 million decline in real GDP.
c. tax multiplier overpowers the income multiplier, triggering a rollback in real GDP.
d. effect on real GDP is uncertain.
a
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The silly clothes worn by a circus clown are an example of
a. market inefficiency b. capital goods c. labor, if it is used by labor exclusively d. human capital e. entrepreneurship, if the clown becomes more creative wearing the clothes
A production possibilities frontier is a diagram that shows the combinations of output that an economy can produce, given its current factors of production and level of technology
a. True b. False Indicate whether the statement is true or false
The worst weekly decline in U.S. stock market history occurred during the week beginning with ________
A) March 20, 1933 B) December 7, 1941 C) September 12, 2001 D) October 6, 2008
All of the following are true regarding a long-term contract between an upstream firm and a downstream firm except which one?
A) The downstream firm can incur opportunity costs. B) The upstream firm can incur opportunity costs. C) Both firms have increased flexibility. D) Changes in market conditions can impose new costs to either firm.