Answer the following questions true (T) or false (F)
1. By the 2000s, investment banks had become significant participants in the secondary market for mortgages.
2. A decrease in the marginal income tax rate is a fiscal policy which will increase aggregate demand.
3. The income tax system serves as an automatic stabilizer over the course of the business cycle.
1. TRUE
2. TRUE
3. TRUE
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Refer to Table 1-3. What is Santiago's marginal benefit if he decides to stay open for an extra two hours instead of one hour?
A) $40 B) $50 C) $120 D) $190
When the total external and internal costs of a transaction are taken into consideration, this is known as
A) public costs. B) average total costs. C) social costs. D) marginal costs.
The accompanying graph shows the cost curves for a competitive firm. What is the lowest price at which the firm will start producing output in the short run?
A. $1.25 B. $1.05 C. $0.90 D. $0.60
If a country has perfect income equality, the Gini coefficient is
A. 1. B. -1. C. 0. D. infinity.1