Why is it unlikely that tax increases will be the way to eliminate current U.S. federal budget deficits?
A. The revenues generated by increasing taxes on the rich would only pay for a small portion of the federal budget deficit in any recent year.
B. Increasing every worker's taxes by the same amount could eliminate the deficit, but it is likely this action would be viewed as too burdensome for workers with modest incomes.
C. Since World War II, on average when taxes were increased by a dollar, federal government spending increased by that much and more.
D. all of these
Answer: D
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If the labor force in an economy is not fully employed, then
a. the economy is operating outside of its production possibilities frontier b. the economy is operating on its production possibilities frontier c. there must have been an increase in technology to compensate for the labor shortage d. the opportunity cost of producing more of one good is negative e. the economy is operating inside its production possibilities frontier
Technological knowledge
a. is the same thing as human capital. b. can be discovered but it can never be kept secret. c. is a determinant of productivity. d. does not play a role in the relationship that economists call the production function.
Which of the following is most likely to be predicted by the Heckscher-Ohlin theory?
A. The wage rate of the low-skilled workers will be higher in the developing countries than in the developed countries. B. The industrialized nations will mainly export labor-intensive goods. C. Countries like China will completely specialize in the production of primary products. D. The developing countries will mainly export labor-intensive goods.
Assume Barbara likes driving fast, but hates getting injured. If Congress passes a law for mandatory airbags, Barbara is likely to experience an increased number of accidents. Why?
A. The expected cost of an accident at any given speed decreases. B. Barbara is confident that she can drive flawlessly since others will have airbags. C. The benefits of driving fast increase. D. Barbara will defy the law and not have airbags, since she thinks no one is going to enforce installing airbags in cars.