Explain what protections and rules are in place for entrepreneurs, which encourages them to innovate
The U.S. was among the first to create such legal institutions as private property rights, and an inexpensive patent system. In addition, the fact that contracts are enforceable by the courts, and that one may file for bankruptcy give options to entrepreneurs to take the risk of innovation, and to moderate the effects of failure in the event they are unsuccessful. In Europe, historically, the king could expropriate private property at his pleasure, and the patent system, when it was formed, was quite expensive, and subject to the whim of the king. In the U.S., all of these rules and systems also ensured entrepreneurs and innovators that they could keep more of the wealth generated by their efforts. Their success encouraged others to also innovate, and so the U.S. economy grew exponentially because of their efforts
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If a household has a single woman and three kids, has a standard deduction of $6,300, has itemized deductions of $10,650, and personal exemptions of $12,000 (3*$4,000), then the first ________ of income is federal income tax free.
A. $18,300 B. $22,650 C. $16,850 D. $28,950
A larger marginal propensity to import will make the slope of the aggregate expenditure function flatter
Indicate whether the statement is true or false
Which of the following would shift the aggregate demand curve to the left?
a. An increase in exports. b. An increase in investment. c. An increase in government spending. d. A decrease in government spending.
What does the Gini coefficient measure?
A. the correlation coefficient between income and education B. the degree of inequality in an income distribution C. the degree of tax incidence paid by poor workers D. the covariance of income and education E. the rate of growth of income inequality over time