In the middle of a severe recession, Congress passes an increase in the level of unemployment benefits. This would be considered by economists as a
A. positive tax.
B. negative tax.
C. form of government purchases.
D. variable tax.
Answer: B
You might also like to view...
Generally, ________ motivates firms to enter an industry, while ________ motivates firms to exit an industry.
A. accounting profit; accounting loss B. economic profit; economic loss C. economic profit; accounting loss D. accounting profit; economic loss
The main reason that finished goods are scarce is that
A. raw material resources are scarce. B. factories are not operated efficiently. C. distribution systems are clogged. D. taxes are destroying work incentives. E. All of the responses are correct.
Non-credible threats that are made in a Nash equilibrium (that is not subgame perfect) of a sequential game cannot be made in the first stage by the player who begins the game.
Answer the following statement true (T) or false (F)
The level of potential GDP
A) increases as the real rate of interest decreases. B) increases as the real rate of interest increases. C) is unaffected by the real rate of interest. D) is represented on the IS-MP model by a horizontal line at the world real rate of interest.