Which of the following would not enhance economic growth?
a. Subsidies for investments in physical capital
b. An increase in the corporate profits tax
c. Subsidies for investments in human capital
d. A tax cut that encourages saving
e. Subsidies for research and development expenditures
B
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Every economic choice has an opportunity cost
a. True b. False Indicate whether the statement is true or false
What is the underground economy? How does it affect GDP calculations? Provide three examples of underground economy transactions
One of the eight big ideas underlying the study of economics is that government policies ______.
a. direct an economy like an “invisible hand” b. may help stabilize the economy c. generally do more harm than good d. have little impact in a market economy
Protectionism is best defined as
A. reducing barriers to trade in order to protect firms that export to other nations. B. using tariffs, quotas, or other barriers to trade to protect domestic jobs. C. using low-cost loans from the government to encourage industries to offshore their operations to other nations. D. protecting workers from layoffs by subsidizing industries in danger of reducing their workforces.