If an increase in marginal tax rates leads to an increase in tax revenues, then a. the Laffer curve model of tax revenue is refuted. b. supply-side economics is refuted. c. the economy could be below the tax revenue maximizing tax rate. d. we could be on the upward sloping portion of the Laffer curve. […]
Date: September 10th, 2020
When the English pound appreciated against a colonial currency, this signaled (a) that colonists needed more colonial currency to buy an English pound. (b) that colonists needed less colonial currency to buy an English pound. (c) that colonists needed more colonial and Spanish currency to buy an English pound. (d) nothing of economic importance. […]
Date: September 10th, 2020
All of the following methods were used to raise funds to finance the Civil War (1861–1865) except (a) An income tax (b) The printing of paper money (c) Taxes on prostitution (d) Taxes on whiskey and beer ANSWER (c)
Date: September 10th, 2020
Today, about one out of four legal immigrants arrives in the U.S with experience in a professional occupation. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Which of the following models do not believe that there exists a short run tradeoff between higher inflation and lower unemployment? a. Keynesians b. monetarists c. new classical d. real business cycle e. none of the above ANSWER D
Date: September 10th, 2020
Economic historians do not believe there was a shortage of money in colonial America for which of the following reasons? (a) Interest rates were not unreasonably high. (b) Long-term prices were rising. (c) The colonial economy was growing in real terms. (d) All of the above. ANSWER (d)
Date: September 10th, 2020
The difference between the Keynesian and classical labor supply functions is that in the Keynesian version a. workers know the real wage while in the classical system workers must form an expectation of the price level. b. workers must form an expectation of the price level while the workers know the real wage in the […]
Date: September 10th, 2020
In the contract theory of wages, if workers and firms agree to enter into contracts in which their money wage adjusts automatically to changes in the actual price level, then aggregate supply a. slopes upward and to the right. b. shifts upward. c. is horizontal. d. is vertical. ANSWER D
Date: September 10th, 2020
A government runs a deficit when its government revenues exceed expenditures. Indicate whether the statement is true or false ANSWER False (It runs a surplus.)
Date: September 10th, 2020
Article I, Section 8, clause I of the federal Constitution requires that all “Duties, Imposts, and Excises shall be uniform throughout the United States.” Hence, the Sixteenth Amendment to the U.S. Constitution (1913) was needed to grant constitutionality to the unequal taxation of land, its products and income. Indicate whether the statement is true or […]
Date: September 10th, 2020
