An individual is endowed with $100 of income in period 1, and will receive an income of 121 in period 2. The interest rate is 10%, and there are only 2 periods. The maximum first period consumption consistent with the intertemporal budget constraint is
a) 100
b) 110
c) 121
d) 210
e) 221
d) 210
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Income taxes tend to be favored over sales taxes _____
a. because of the excess burden on income taxes b. on the benefit principle c. on equity grounds d. as long as income as defined using the Haig-Simons definition
In the 1980s, the U.S. current account deficit was financed by:
a. large outflows of domestic capital to other countries. b. large inflows of capital from private foreign investment in the United States. c. loans made by U.S. residents to the government. d. large inflows of foreign government capital. e. the Tax Reform Act of 1986, which increased income taxes for the wealthy.
Ceteris paribus, if Canadians decide they want to eat more U.S.-grown soybeans, this causes the ________ U.S. currency to ________.
A. supply of; decrease B. demand for; decrease C. supply of; increase D. demand for; increase
All patent protected products would not have been developed without patent protection.
Answer the following statement true (T) or false (F)