A tax cut initially
A) increases consumption expenditure by an amount greater than the tax cut.
B) increases consumption expenditure by an amount equal to the tax cut.
C) increases consumption expenditure by an amount that is less than the value of the tax cut.
D) has no effect on consumption expenditure.
E) reduces consumption expenditure by an amount that is less than the value of the tax cut.
C
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Women typically earn less than men, even in the same occupation. Which of the following is an explanation for this discrepancy?
A) Women tend to take riskier jobs and earn compensating wage differentials. B) Women have, on average, less workforce experience than men of the same age. C) Women do not work as hard as men because of cultural influences. D) Women are, on average, less motivated than men and therefore tend to avoid taking on more responsibilities.
The meaning of "terms of trade" is
A) the price of a country's exports divided by the price of its imports. B) the amount of exports sold by a country. C) the price conditions bargained for in international markets. D) the quantities of imports received in free trade. E) the tariffs in place between two trading countries.
One of the key reasons why monopolies exist is:
A. there is easy entry and exit into and out of the market. B. the goods sold are highly inaccessible to buyers. C. there are barriers to entry into the market. D. geographical differences.
Assume the money market is initially in equilibrium. If the price level increases, then according to liquidity preference theory there is an excess
a. supply of money until the interest rate increases. b. supply of money until the interest rate decreases. c. demand for money until the interest rate increases. d. demand for money until the interest rate decreases.