Under a negative income tax system, people can make payments to or receive them from the IRS
a. True
b. False
Indicate whether the statement is true or false
True
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If it is difficult for a firm to attribute the output it produces to a particular worker then
A) a piece-rate system of compensation will be preferable to a salary system. B) a salary compensation system will be preferable to a commission system. C) its employees are likely to form a union. D) a commission system of compensation will be preferable to a salary system.
How do critics of stabilization policy view the "political business cycle"?
a. They suggest shorter election cycles would improve stabilization. b. They believe that politicians cause economic instability, due mainly to the election schedule. c. They believe that the Fed can resist political pressure and stabilize the economy. d. They believe that politicians do not know enough economics in order to stabilize the economy.