Taxes cause:
a. Market distortions
b. A reduction in incentives to work
c. A decrease in wealth creating transactions
d. All of the above
d
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For the federal deficit to be lowered,
A) the federal government must decrease its spending and increase net exports. B) the federal government's expenditures must be lower than its tax revenue. C) the Federal Reserve must reduce the money supply. D) the Federal Reserve must raise interest rates and lower the required reserve ratio.
A black market is a market where buying and selling take place
A) in non-licensed shops and warehouses. B) at prices that violate government price regulations. C) after regular office hours. D) on foreign soil.
According to the following figure, the equation for demand is
A. Q = 4,000 - 50P. B. Q = 50 - 80P. C. P = 4,000 - 50Q. D. P = 4,000 - 80Q. E. none of the above
A characteristic of a good model is that
A. it predicts perfectly. B. it applies to all situations. C. it is useful for making irrefutable predictions. D. its predictions can be tested using real-world data.