An example of contractionary fiscal policy would be
a. cutting taxes
b. decreasing government spending
c. increasing production of consumer goods
d. expanding the governments role in regulating private industry
Ans: b. decreasing government spending
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Earmarked taxes _____
a. are taxes whose revenues are dedicated to a particular program b. are taxes whose revenue is given to a specific group c. are income taxes that minimize the decline in labor supply d. are taxes that go into the general fund
Since Social Security is a pay-as-you-go program, the funds for the people retiring today
A) come from those of us working today and in the future. B) come from the Federal Reserve. C) come from import taxes. D) come from foreign sales of gold.
The law of comparative advantage says that a person should produce a good if she
a. has the greatest desire to consume that good b. has the lowest opportunity cost of producing that good c. has an absolute advantage in a related activity d. has a comparative advantage in a related activity e. is equally good at producing this good as someone else is
During the Great Depression of the 1930s, the unemployment rate reached more than _________ of the labor force
a) 25% b) 65% c) 45% d) 85%