Which of the following would be the best choice for the government of Paulina if it decides to stimulate its economy by increasing consumption?
a. An excise tax on pharmaceuticals
b. An excise tax on resort stays
c. A subsidy for utility payments
d. A subsidy for clothing
d
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A corporation ________ taxes on its profits and its stockholders ________ taxes on any dividends made to them by the company
A) pays; pay B) pays; do not pay C) does not pay; pay D) does not pay; do not pay
The lowest price Jacob will accept from Harold for a bushel of corn produced in his farm is $5 . The transaction will go through if:
a. Harold's valuation is less than Jacob's. b. Harold's valuation is greater than $5. c. Jacob's opportunity cost is greater than Harold's. d. Jacob's opportunity cost is equal to Harold's.
According to the Taylor rule, the Federal Reserve sets interest rates in response to:
A. the inflation rate and the current output gap. B. the current output gap and the target money supply growth. C. the S&P 500 index and the inflation rate. D. the inflation rate and the unemployment rate.
A credit union faces a(n) ________ problem when it lends funds to a customer to remodel her home and the customer then opportunistically uses the funds for a gambling trip to Las Vegas.
A. adverse selection B. moral hazard C. free-rider D. external cost