The standard way to measure the effect of debt in an economy is the stock of debt relative to the GDP
Indicate whether the statement is true or false
TRUE
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If the tax on each Snicker's bar is 10 percent of its price, than that tax is a
a. sales tax b. unit tax c. corporate tax d. progressive tax e. estate tax
Which of the following can be considered an example of structural unemployment?
a. A recent graduate searching for his first job b. A ski instructor looking for a part-time job during summer c. An engineer looking for a new job after losing his job during a recession d. A typist looking for a new job as his skills are not needed in the current labor market
If citizens of a country are not saving much, it is better to
a. force citizens to save. b. reduce investment. c. have foreigners invest in the domestic economy than no one at all. d. prevent opportunities for citizens to buy capital assets abroad.
The GDP tends to:
a) overstate economic welfare because it does not include certain nonmarket activities such as the productive work of housewives. b) understate economic welfare because it includes expenditures undertaken to offset or correct pollution. c) understate economic welfare because it does not take into account increases in leisure. d) overstate economic welfare because it does not reflect improvements in product quality.