Economists feel that taxing nominal capital gains imposes costs on the economy due to a. increased...
Economists feel that taxing nominal capital gains imposes costs on the economy due to
a. increased consumption.
b. reduced investment.
c. reduced consumption.
d. increased investment.
Homework Answers
Taxing nominal capital gain in the market will be a cost to the economy because it will reduce the investment in the market. The answer is "B".
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Economists feel that taxing nominal capital gains imposes costs
on the economy due to
a. increased...
9) As an economy's capital stock increases, the economy A) generally experiences increased unemployment of other...
9) As an economy's capital stock increases, the economy A) generally experiences increased unemployment of other reso B) generally decides to engage in international trade. C) experiences economic growth. D) gains an absolute advantage in the production of capital goods
Economists believe that there are many nonmonetary gains from further trade opening. Which of the following...
Economists believe that there are many nonmonetary gains from further trade opening. Which of the following is NOT one of those potential gains? a. Governments will be less reliant on tariff revenue. b. Intensified competition lowers prices. c.Economies of scale from increased production decreases costs. d. Diversification of production lowers risks
Economists differentiate between these types of capital; physical capital, human capital and financial capital. Which of...
Economists differentiate between these types of capital; physical capital, human capital and financial capital. Which of the following statement is false? Select one: O a. Human capital includes changes in the level of education or training workers possess O b. Financial capital refers to the funds available in an economy for investment spending c. Financial capital refers to expenditures on manufacturing equipment o d. Physical capital includes changes in inventories.
The production function explains O A. all the machines, equipment, and buildings in the entire economy....
The production function explains O A. all the machines, equipment, and buildings in the entire economy. O B. how the total level of output or GDP in the economy is generated from the factors of production. ° C. the efforts, both physical and mental, of all the workers in the economy used to produce goods and services. O D. All of the above Which best explains the phenomenon of crowding in an open economy? O A. Decreased investment is replaced...
6. If the relative opportunity costs of producing goods are identical across countries, then there are tary p A. no gains from trade. for t B. gains from trade if trade is based on absolute advan...
6. If the relative opportunity costs of producing goods are identical across countries, then there are tary p A. no gains from trade. for t B. gains from trade if trade is based on absolute advantage mand C. gains from trade if trade is based on comparative advantage pply D. gains from trade that depend on the degree of competition between intemational traders. nd fo 7. The text lists three reasons why economists and non-economists see the pros and cons...
7) An invention that raises the future marginal product of capital in a closed economy) would...
7) An invention that raises the future marginal product of capital in a closed economy) would cause an increase in desired investment, which would cause the investment curve to shift to the and would cause the real interest rate to A) right; increase B) right; decrease C) left: increase D) left: decrease 8) Over the past year, output grew 4%, capital grew 2%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.3...
During the recent recession sparked by financial crisis, the U.S. economy suffered tremendously. Suppose that, due...
During the recent recession sparked by financial crisis, the U.S. economy suffered tremendously. Suppose that, due to the recession U.S. GDP dropped from $14 trillion to $12.5 trillion. This fall in GDP was due to a drop in consumption of $1 trillion and a drop in investment of $500 billion. The U.S. government, under the Obama administration, responded to this recession by increasing government purchases Instructions: Round your answer to one decimal place a. Suppose that government spending had no...
An economy has a Cobb-Douglas production function: Y = Ka(LE)(1-a). The economy has a capital share...
An economy has a Cobb-Douglas production function: Y = Ka(LE)(1-a). The economy has a capital share of a third (means a= 1/3), a saving rate of 24 percent, a depreciation rate of 3 percent, and a rate of labor-augmenting technological change of 1 percent. It is in steady state. a. At what rate does total output, output per worker, and output per effective worker grow? b. Solve for steady state capital per effective worker, output per effective worker, consumption per...
1. The economy has 8 million units of capital and 8 million units of labor. The...
1. The economy has 8 million units of capital and 8 million units of labor. The production function is and A = 1. The consumption function is: C = 1.5 million + 0.75 (Y-T) Investment demand is: I = 3 million – 0.2 million x (r%) Taxes (T) are 2 million. Government purchases (G) are 1 million. Given this information, answer the following questions: a. What it total output (Y) in this economy equal to? b. What is disposable income...
Assume an economy is populated by L workers with total capital stock K. Production of this...
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9) As an economy's capital stock increases, the economy A) generally experiences increased unemployment of other reso B) generally decides to engage in international trade. C) experiences economic growth. D) gains an absolute advantage in the production of capital goods
Economists differentiate between these types of capital; physical capital, human capital and financial capital. Which of the following statement is false? Select one: O a. Human capital includes changes in the level of education or training workers possess O b. Financial capital refers to the funds available in an economy for investment spending c. Financial capital refers to expenditures on manufacturing equipment o d. Physical capital includes changes in inventories.
The production function explains O A. all the machines, equipment, and buildings in the entire economy. O B. how the total level of output or GDP in the economy is generated from the factors of production. ° C. the efforts, both physical and mental, of all the workers in the economy used to produce goods and services. O D. All of the above Which best explains the phenomenon of crowding in an open economy? O A. Decreased investment is replaced...
6. If the relative opportunity costs of producing goods are identical across countries, then there are tary p A. no gains from trade. for t B. gains from trade if trade is based on absolute advantage mand C. gains from trade if trade is based on comparative advantage pply D. gains from trade that depend on the degree of competition between intemational traders. nd fo 7. The text lists three reasons why economists and non-economists see the pros and cons...
7) An invention that raises the future marginal product of capital in a closed economy) would cause an increase in desired investment, which would cause the investment curve to shift to the and would cause the real interest rate to A) right; increase B) right; decrease C) left: increase D) left: decrease 8) Over the past year, output grew 4%, capital grew 2%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.3...
During the recent recession sparked by financial crisis, the U.S. economy suffered tremendously. Suppose that, due to the recession U.S. GDP dropped from $14 trillion to $12.5 trillion. This fall in GDP was due to a drop in consumption of $1 trillion and a drop in investment of $500 billion. The U.S. government, under the Obama administration, responded to this recession by increasing government purchases Instructions: Round your answer to one decimal place a. Suppose that government spending had no...
Assume an economy is populated by L workers with total capital stock K. Production of this KL. Suppose household's saving rate s economy is organized by Y 0.6, and firm's depreciation rate of capital d = 0.1. The rule for accumulation of captial in per worker terms is of the time-to-build type: A k = i - ôk Standard Transformation of the Production Function a. Show that the production function is constant return to scale (CRS) b. Rewrite the production...
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