Which of the following provides a strong incentive to supply dollars on the foreign exchange market?
A. To invest in U.S. assets
B. To take advantage of higher inflation rates in other countries
C. To purchase goods and services produced abroad
D. To get a lower return paid on foreign currencies that is not subject to the risk associated with exchange-rate fluctuations
Answer: C
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Under current tax law individuals do not pay taxes on health insurance benefits they receive from their employers. As a result
A) the quality of health care provided is less than it would be if benefits were taxed. B) politicians are encouraged to raise income and payroll taxes. C) individuals are encouraged to want generous health coverage that reduces their incentives to cut costs. D) the federal government spends more than it receives in tax revenue.
Personal income does not include
a. transfer payments. b. capital consumption allowance. c. dividends. d. interest income.
When the government intervenes in markets with bystanders, why does it do so?
a) to protect the interests of bystanders b) to make certain all benefits are received by market participants c) to better coordinate the actions of buyers and sellers d) to increase production when negative externalities are present
Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. If Country B transfers one labor hour from the production of Good X to the production of Good Y, total world production of Good Y will ________ by ________ unit(s). ProductivityCountry ACountry BGood X1.000.50Good Y0.200.70
A. increase; 0.7 B. increase; 0.5 C. decrease; 1.5 D. decrease; one