Taxing savings in ways that lower the interest rate received by savers will lower savings.
Answer the following statement true (T) or false (F)
False
Rationale: It depends on whether wealth effects outweigh substitution effects.
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Scarcity
A. necessitates choice among consumer goods. B. of income renders purchase decisions interdependent. C. affects all consumer decisions. D. may involve forgoing the pleasure of one good in order to enjoy another. E. All of the above answers are correct.
The percentage of workers whose wages are set by explicit contracts falls. This should
A. have no impact on the movement of the labor market toward equilibrium after a change in the demand for labor. B. cause the labor market to always be at an equilibrium, even if there is a change in the demand for labor. C. make it easier for the labor market to reach an equilibrium after a change in the demand for labor. D. make it more difficult for the labor market to reach an equilibrium after a change in the demand for labor.
The sources of economic growth, as measured by increases in real GDP per-capita, include
A. an increase in the number of workers. B. an increase in economic freedom. C. an increase in the productivity of workers. D. all of these are sources of growth.
Suppose one goal of the tax system was to achieve vertical equity. While people may disagree about what is "equitable," based on the marginal tax rates given for the two years, which of the following statements is true?
a. Vertical equity is possible in both years. b. Vertical equity is possible in 2009 but not in 2010. c. Vertical equity is not possible in 2009 but is possible in 2010. d. Vertical equity is not possible in either year.