Tax loopholes serve to
A. improve the incomes of the poor.
B. erode the progressivity of the income tax.
C. increase the progressivity of the income tax.
D. decrease work incentives for the poor.
Answer: B
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When the economy is at full employment the
A) natural unemployment rate is equal to 0 percent. B) natural unemployment rate equals the unemployment rate. C) natural unemployment rate is equal to 10 percent. D) unemployment rate is equal to 0 percent.
All of the following are characteristics of game theory except
A) payoffs that are the results of the interaction among players' strategies. B) rules that determine what actions are allowable. C) independence among players. D) strategies that players employ to attain their objectives.
The number of workers represented by unions has
A. represented an ever-larger fraction of the shrinking U.S. labor force. B. increased. C. stayed roughly the same. D. decreased.
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.