When a unit tax of $1 is levied on a product
A. the consumer pays part of the $1 and the producer pays the rest.
B. the entire $1 is paid by the producer.
C. both the consumer and producer pay $1 each.
D. the entire $1 is paid by the consumer.
Answer: A
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If the Federal government expands its support of education and retraining of workers who have been unemployed for a relatively long length of time, which type of unemployment would the education and retraining most likely be targeted?
A) discouraged B) cyclical C) structural D) frictional E) government
Compared to 1960-79, U.S. net national saving form 1980-92 as a proportion of national income
A) rose tremendously. B) rose slightly. C) fell slightly. D) fell precipitously.
Economists are particularly adept at understanding that people respond to
a. laws. b. incentives. c. punishments more than rewards. d. rewards more than punishments.
Suppose the banking system has no excess reserves, a reserve requirement ratio of 10%, and $50 billion of required reserves. What is the total checkable deposits in the banking system?
A. $50 billion B. $500 billion C. $450 billion D. $550 billion