An increase in the tax rate on interest income will lead to: Select one: O a. More saving, more investment, and more economic growth. O b. Decreased government spending due to its increased tax revenues. O C. Less saving, less investment, and lower economic growth. O d. A strong substitution effect: people will work more and rely less on investments as their source of income. O e. Less saving, more spending, and more economic growth.

An increase in the tax rate on interest income will lead to: Select one: O a. More saving, more investment, and more economic growth. O b. Decreased government spending due to its increased tax revenues. O C. Less saving, less investment, and lower economic growth. O d. A strong substitution effect: people will work more and rely less on investments as their source of income. O e. Less saving, more spending, and more economic growth.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following diagram represents an economy in which total factor productivity z increases. PPF2 PPF, 12 (0,0) in Leisure, I PPF3 What are the income effect, and substitution effect? O A to D: income effect D to B: substitution effect A to B: substitution effect B to D: income effect O A to D: substitution effect D to B: income effect OB to D: substitution effect A to B: income effect Consumption, C
F B Consumer Goods Refer to the above diagram. A shift in the production possibilities curve from AB to CD is most likely due to: the use of the economy's resources in an efficient way. an increase in government purchase of the economy's output. an increase in the quantity and quality of labor resources. an increase in the spending of business and consumers. DI 4. Capital Goods O Oo o
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Which one of the following does NOT represent a key macroeconomic variable? O A. The population growth rate. O B. Gross Domestic Product (GDP). O C. The inflation rate. O D. The unemployment rate.
In a microeconomic model, how would you differentiate between an 'exogenous' variable and an 'endogenous' variable? O Endogenous variables are those determined within the model, while exogenous variables are given from outside the model. O Exogenous variables are those which economists do not study, while endogenous variables are heavily studied. O Exogenous variables are variables that economists cannot measure, while endogenous variables are measurable. Exogenous variables cannot influence endogenous variables in any economic model. O More than one of the above.
Which of the following is related to the use of economics? O a. how people use unlimited resources to satisfy limited wants O b. how businesses use unlimited resources to satisfy unlimited consumer wants Oc how people use scarce resources to satisfy unlimited wants O d. how people use unlimited resources to satisfy their unlimited wants
Can you answer please?
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Assuming that the substitution effect is large relative to the income effect, tax reform designed to increase saving a. increases the interest rate and decreases spending on capital goods. b. increases the interest rate and increases spending on capital goods. c. decreases the interest rate and increases spending on capital goods. d. decreases the interest rate and decreases spending on capital goods.
An economy produces two goods, clothing and petroleum. Which of the following would explain a pivot inwards along the petroleum аxis? Select one: O a. a productive improvement in clothing production that has no effect on petroleum production O b. an increase in the size of the labor force that can produce either petroleum products or clothing O c. major oil reserves in Alaska are declared off-limits to producers in order to protect the environment O d. major oil reserves are discovered off the coast of Africa Oe. a productive improvement in petroleum production that has no effect on clothing production