Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
a. higher tax rates
b. a higher rate of investment
c. a smaller trade sector
d. greater use of taxation to transfer income from the rich to the poor
B
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The average duration of unemployment
A) decreases during recessions and increases during expansions. B) increases during recessions and decreases during expansions. C) does not vary with the business cycle. D) decreases all the time. E) increases all the time.
The Ricardian two-country two-good model predicts that there are potential benefits from trade, but NOT
A) the effect of trade on income distribution. B) the mechanism that determines which country will specialize in which good. C) when one country has an absolute advantage in the production of both goods. D) when one country has significantly lower wages than the other country. E) when both countries have the same types of technology available.
Property that is owned by everyone and therefore by no one in particular is referred to as
A) common property. B) social property. C) private property. D) commercial property.
The optimal time for the implementation of contractionary fiscal policy would be
A. before inflation accelerated. B. after inflation accelerated. C. after unemployment increased. D. after the price level had risen significantly.