In the early 2000s, some argued that the Indian government impeded foreign investment with tariffs, investment caps, and tons of red tape. In terms of promoting or retarding economic growth, such policies:
A. increase growth because they keep people producing for the local market.
B. decrease growth because they slow the growth of capital.
C. increase growth because they stop exploitation by foreigners.
D. decrease growth because they cause inflation.
Answer: B
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Define tax expenditures. What are the costs and benefits to using tax expenditures for social policy rather than direct government expenditures?
What will be an ideal response?
The following types of statistical inference are used throughout econometrics, with the exception of
A) confidence intervals. B) hypothesis testing. C) calibration. D) estimation.
During the 1980s, the top marginal tax rate on personal income was reduced from 70 percent to less than 40 percent and it has remained below 40 percent since that time. In recent years, the share of the personal income tax collected from the top one-half of one percent of earners has
a. fallen sharply from the level of years prior to 1981. b. increased sharply during the Clinton administration, but declined substantially during the administration of George W. Bush. c. been virtually unchanged from the level of years prior to 1981. d. increased substantially from the level of years prior to 1981.
Arun is a job seeker. He notes that although the U.S. unemployment rate has dropped, the frictional unemployment has risen. How should he feel about this news?
a. concerned, because an uptick in frictional unemployment usually corresponds to the start of an economic slowdown b. optimistic, because frictional unemployment often rises when there are a lot of available job opportunities c. ambivalent, because the economy is doing well, but it will probably take him a long time to find a job d. confused, because the frictional unemployment rate almost always mirrors overall unemployment rate