When the government implements programs such as progressive income tax rates, which of the following is likely to occur?
a. equality is increased and efficiency is increased.
b. equality is increased and efficiency is decreased.
c. equality is decreased and efficiency is increased.
d. equality is decreased and efficiency is decreased.
b
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A vector autoregression
A) is the ADL model with an AR process in the error term. B) is the same as a univariate autoregression. C) is a set of k time series regressions, in which the regressors are lagged values of all k series. D) involves errors that are autocorrelated but can be written in vector format.
National income is defined as
a. the total income of a nation's permanent residents minus losses from depreciation. b. the income that households and noncorporate businesses receive. c. the total income earned by a nation's permanent residents in the production of goods and services. d. the income that households and noncorporate businesses have left after satisfying all their obligations to the government.
In the circular-flow diagram, which of the following items represents a payment for a factor of production?
a. interest
b. capital
c. spending by households on goods
d. spending by households on services
When a firm sells its good abroad below the cost of producing the good the firm is
A) using the concept of comparative advantage. B) dumping. C) taking advantage of the infant industry argument. D) taking advantage of absolute advantage.