We cannot be certain that a general sales tax will decrease labor supply because _____
a. of the effect of lower income on labor supply
b. of the effect of higher tax revenue on consumption
c. of the effect of the sales tax on labor supply
d. we do not know about labor demand
a
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Banks would be expected to minimize holding excess reserves because this practice is
A. illegal.
B. not profitable.
C. technically difficult.
D. subject to a stiff excess reserves tax.
Suppose the market for cement is one where there are a large number of buyers and sellers, and everyone conducts transactions at a common market price. Which of the following statements is true about the structure of the cement market?
A) The cement market is free and competitive. B) The cement market is government regulated. C) All participants in the cement market set their own prices. D) All transactions in the cement market are likely to be involuntary.
Financial capital is highly volatile, and technological advances have reinforced this volatility
Indicate whether the statement is true or false
Which of the following would increase the trade deficit?
A. A tax on imports B. Foreign countries subsidizing their exports C. The U.S. government reducing the budget deficit D. An increasing preference of American consumers for domestic products