Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
a. Higher tax rates.
b. A higher rate of investment.
c. A smaller trade sector.
d. Greater use of taxation to transfer income from the rich to the poor.
b
You might also like to view...
Which of the following is NOT a defining characteristic of perfectly competitive industries?
A) many buyers and sellers B) unrestricted entry and exit C) consumer knowledge about prices charged by each firm D) higher prices being charged for certain name brands
Tele-Com, Inc., the nation’s largest cable TV company, tested the effect of a price reduction for the Disney Channel. It lowered prices from $10.75 to $7.95 and found that the number of customers more than doubled. This means the
A. demand curve for the Disney Channel shifted to the right. B. supply curve of the Disney Channel shifted to the left. C. demand for the Disney Channel is elastic in this price range. D. demand for the Disney Channel is inelastic in this price range.
Bobby is offered a job as a salesperson in which there is a 50 percent chance that he will make $2,000 and a 50 percent chance that he will make $10,000. Bobby's utility of wealth curve is shown in the figure above. What is Bobby's cost of risk?
A) $1,000 B) $2,000 C) $3,000 D) $4,000
Suppose when the price of hybrid automobiles rises, consumers buy fewer hybrid automobiles. This implies that
A) there is a direct relationship between hybrid automobile prices and quantities purchased by consumers. B) there is a one-to-one relationship between hybrid automobile prices and quantities purchased by consumers. C) there is a positive relationship between hybrid automobile prices and quantities purchased by consumers. D) there is a negative relationship between hybrid automobile prices and quantities purchased by consumers.