In a world with saving, making an income tax a consumption tax would require the tax base to be _____
a. income
b. income minus savings
c. consumption plus investment
d. comprehensive
b
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What helps to explain the remarkable 7.3% growth rate in South Korea between 1960 and 2011?
A) The education of South Korean women B) A radical reduction in foreign imports and a maximization of South Korean exports C) Huge foreign aid from the World Bank D) All of the above. E) None of the above.
Which of the following is equivalent to the natural rate of unemployment?
A. An unemployment rate of zero percent B. The nonaccelerating inflation rate of unemployment C. The rate of cyclical unemployment D. The underemployment rate
Keynes argued that policy levers were both effective and necessary.
Answer the following statement true (T) or false (F)
A basic distinction between the long run and the short run is that
A) if a firm produces no output in the long run, it still incurs a cost. B) the opportunity costs of production are lower in the short run than in the long run. C) in the long run, some inputs are fixed, while in the short run, all inputs are variable. D) in the short run, complete adjustment of all inputs is impossible, while in the long run all inputs can be adjusted.