Federal taxes have which of the following effects on the economy?
A. If taxes are decreased, businesses will invest the difference back into the economy.
B. If taxes are increased, the economy expands due to a balanced budget.
C. There is no definitive agreement on the effect.
D. Lower federal taxes will cause budget surpluses.
Answer: C
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Paul Romer's theory of economic growth differs from traditional theories in that
A) Romer argues an investment-knowledge cycle can exist, but requires constant increases in investment rates, while traditional theories argue that investment rates can be constant. B) Romer argues that investment in human capital always occurs before investment in physical capital, while traditional theories emphasize the priority of physical capital. C) Romer argues an investment-knowledge cycle allows a one-time increase in investment to permanently increase a country's growth rate, while traditional theory argued such an investment would have only a short-term effect. D) Romer argues that investment in capital goods is not important in encouraging growth while investment in human capital is, whereas traditional theorists emphasize both human and physical capital.
In the figure above, international trade ________ producer surplus in the United States by ________
A) decreases; $2.88 billion B) decreases; $1.92 billion C) increases; $4.8 billion D) increases; $3.6 billion
Over the period 1960-2010, the United States economy grew at roughly
A) 2.1 percent. B) 3 percent. C) 4 percent. D) one percent. E) 3.5 percent.
The Standard Oil trust
A. forced the railroads to grant it discounts but not to its competitors. B. forced the railroads to give it payments on every shipment of oil refined by rival firms. C. violated the Sherman Antitrust Act. D. All of the choices.