The larger the deadweight loss from taxation, the larger the cost of government programs
a. True
b. False
Indicate whether the statement is true or false
True
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If foreigners decide to increase their investments in the U.S., this will cause
a. an appreciation of the dollar and foreign goods to become cheaper b. a depreciation of the dollar and U.S. goods to become cheaper c. a favorable balance of trade and an appreciation of the dollar d. a devaluation of the dollar and a favorable balance of trade e. a surplus in the current account
Which statement is true?
A. President Eisenhower did not attempt to undo the legacies of the New Deal, such as Social Security and unemployment insurance. B. There was a major tax increase in 1964. C. A war in Vietnam and a "war on poverty" in the Johnson Administration helped to reduce the federal budget deficit. D. None of the choices are true.
Briefly explain what the sacrifice ratio is and how policy makers can use it in their decision making. Then give an example of policymaking using the sacrifice ratio that highlights the limits of this tool.
What will be an ideal response?
If the marginal cost were $22, the firm would maximize its profit at _____ unit(s) of output.
A. 1
B. 2
C. 3
D. 4