A Constitutional amendment requiring that the federal government budget be balanced annually would have
A. overall positive impact upon the economy during any stage of a business cycle.
B. an automatic stabilizing impact upon the economy.
C. an automatic destabilizing impact upon the economy.
D. overall neutral impact upon the economy.
Answer: C
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The largest component of income is proprietors' income
Indicate whether the statement is true or false
Suppose a tax rate of 10 percent applies to all income up to $20,000 a year, income above $20,000 up to $50,000 a year is taxed at a rate of 15%, and income above $50,000 a year is taxed at 20%. Calculate the absolute amount of tax paid by a person whose annual income is $30,000
a. $2,000 b. $2,500 c. $4,500 d. $4,000 e. $3,500
Inflation is the: a. the value of goods and services produced in an economy in a given period of time. b. is the value of goods and services imported by an economy in a given period of time. c. general and ongoing rise in the price level of an economy
d. general and ongoing fall in the price level of an economy.
Gary Becker and Kevin Murphy are among the economists who believe that social factors such as culture, customs, and religion do not explain the choices consumers make.
a. true b. false