If the economy in the graph shown is currently at point D, we can conclude the:
A. government may want to enact contractionary fiscal policy.
B. unemployment rate is likely very low.
C. economy is in an economic boom.
D. All of these are likely to be true.
Answer: D
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What will be an ideal response?
In the U.S., the share of taxes ____ during the early years of George W. Bush's presidency and ____ since then
a. decreased; increased somewhat b. decreased; further decreased c. increased; further increased d. increased; decreased somewhat e. increased; remained constant
The underground economy
A. consists mainly of such involuntary transfer payments as savings and loan fraud and bank robberies. B. consists only of illegal activities such as prostitution, loan-sharking, and narcotics. C. is a very stable percentage of GDP. D. causes GDP to be underestimated by 10 to 15 percent.
Under which one of the following conditions would a lawyer accept a case on a contingent basis?
A) The lawyer is risk averse. B) The client is risk loving. C) The lawyer has several cases on a contingent basis with payoffs that are not perfectly positively correlated. D) The lawyer is more risk averse than the client is.