Suppose Social Security contributions rise by $5 billion while Social Security benefits also rise by $5 billion. Further, personal income taxes fall by $700 million. As a result
A. disposable income should increase while personal income and national income are unchanged.
B. both personal and disposable personal income should increase.
C. national income, personal income, and disposable income should increase.
D. personal income, disposable personal income, and national income remain unchanged.
Answer: A
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When the United States imports goods from the rest of the world, which of the following parties is harmed?
i. domestic producers of the good ii. domestic consumers of the good iii. foreign producers of the good A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Which of the following demonstrates the endowment effect?
A) If you received a good as a gift, you are less likely to attach a monetary value to the good. B) Isabella was not willing to part with her "Chris Hemsworth" poster although she was offered $100 for it, a sum greater than what it costs to purchase another such poster. C) Chris Hemsworth commands a premium in the movie industry because he is endowed with dashing looks. D) Whelan inherits a cottage in Cape Cod from his grandfather and is unwilling to sell it for sentimental reasons.
The interest rate is determined purely by market forces, and not by government involvement.
Answer the following statement true (T) or false (F)
The marginal propensity to consume is defined as the
What will be an ideal response?