The public sector can stimulate research and development through

A. changes to the income tax.
B. changes to the tariff rate.
C. changes to immigration.
D. changes to the capital gains tax.


Answer: D

Economics

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________ in the United States ________ in most European countries

A) GDP per hour; is greater than GDP per hour B) Average weekly hours; are greater than average weekly hours C) The Okun Gap; is equal to the Okun Gap D) The Lucas Wedge; is greater than the Lucas Wedge E) Both A and B are true.

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In the graph above, which points reflect an interest parity arbitrage opportunity?

A) point A B) point B C) point C D) points B and C

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Under the gold standard, if the dollar price of gold is pegged at $35 per ounce and the dollar/euro exchange rate is set at $2.40 per euro, what must the euro price of gold be pegged at?

What will be an ideal response?

Economics

Suppose the market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the market supply function is Qs = 2.5P - 7.5. How much deadweight loss would there be in this market if the quantity bought and sold was 5,000 units?

A. $0.63 B. $62.50 C. $625 D. $6,250

Economics