Suppose a study that finds that the income elasticity of demand for a public good is greater than 1. This implies that the public good should be financed through a ________ income tax system.
A. progressive
B. proportional
C. regressive
D. collective
Answer: A
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If a nation has a higher level of technology than another nation it means that they will be able to produce:
A. more outputs with the same inputs. B. less with the same amount of physical capital. C. the same output with the same level of inputs. D. more with no capital.
The automobile industry is an oligopoly.
Indicate whether the statement is true or false.
The labor supply shock hypothesis suggests that
A) the United States and Europe are following similar labor market policies. B) there is a one-way causation from labor productivity to real wage growth. C) slow real wage growth and slow productivity growth are simultaneously determined by the labor market system. D) B and C. E) none of the above.
Individuals become dependent on welfare payments because the benefits that have to be given up in order to become employed are higher than the benefits from working
a. True b. False