10 out of 10 points
The doctrine of laissez faire is based on the belief that
Markets are likely to do a better job of allocating resources than
Government directives are likely to do a be
Which of the following is not a regressive tax?
Social Security taxes.
Federal income taxes.
Excise taxes on cigarettes.
An example of a transfer payment is
Minimum wages received by a worker in th
Which of the following happens when a price ceiling is set below the market's
Quantity demanded will increase when price falls.
A surplus will develop when price falls.
The quantity sold will increase when price fal
Income inequalities are greatest in
10 points (Extra Credit)
Which of the following is a role for government in an economy?
A person is out of the labor force if she
Mary-Helen has been out of work for a full year.
Deflation is not desirable because
Most prices are falling.
It is historically associated with severe recessions.
Many prices cannot be changed.
It results in the money illusion.
The Consumer Price Index (CPI)
Money spent on the purchase of a new house is included in the GDP as part of
Personal consumption expenditures.
Total spending in a year, with the components C + I + G