Based on the data in the table, this Application addresses the economic concept of
A) the real-nominal principle. B) the principle of diminishing returns.
C) the principle of voluntary exchange. D) the marginal principle.
B
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Economists use ________ to forecast economic activity and to evaluate policy options
A) macroeconometric models B) educated guesses C) cost-benefit analysis D) constrained discretion
Which of the following is an example of a price floor?
a. rent controls b. maximum prices for gasoline c. usury laws that set maximum interest rates d. the minimum wage
Which of the following will cause the Phillips curve to shift to the left?
A. Job search assistance. B. Increasing the marginal tax rate on excess profit. C. Increasing regulation in the economy. D. Attacks by terrorists.
Horizontal equity holds that
A. those who benefit the most from government services should have the greatest voice in determining what gets produced. B. those who benefit the most from government services should bear the higher tax burden. C. those with equal ability to pay should bear unequal tax burdens. D. those with equal ability to pay should bear equal tax burdens.