Which of the following is a problem when comparing GDPs per capita between nations?
a. Fluctuations in exchange rates affect differences in GDP per capita.
b. GDP per capita fails to measure income distribution.
c. All of the answers are correct.
d. GDP per capita is subject to greater measurement errors for LDCs compared to IACs.
c
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In a progressive tax system
A) the marginal tax rate and the average tax rate are the same for every income level and the same as income increases. B) the marginal tax rate increase as income increases but the average tax rate does not change as income increases. C) the marginal tax rate and the average tax rate increase as income levels increase and the marginal tax rate exceeds the average tax rate. D) the marginal tax rate and the average tax rate decrease as income levels increase and the marginal tax rate is less than the average tax rate.
We can roughly estimate how long it will take a country to double its real GDP per capita using the:
A. rule of 70. B. rule of 60. C. growth estimator. D. GDP deflator.
When financial institutions borrow from the Federal Reserve, this is called
A. open market operations. B. borrowing on margin. C. using the discount window. D. fiscal policy.
If the minimum wage is set at a level below the equilibrium wage it:
A. would be a nonbinding minimum wage. B. will probably affect government jobs more than any other job market. C. would interfere with the market reaching equilibrium. D. will have a large effect.