How do high marginal tax rates affect the economic prosperity of a nation?
a. They reduce the incentive of individuals to earn reported income.
b. They encourage the nation's most productive citizens to emigrate to countries where taxes are lower.
c. They discourage foreigners from investing in the country.
d. All of the above are correct.
D
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Income lost by the unemployed is an example of the ________ cost of unemployment, while the additional spending to control crime is an example of the ________ cost of unemployment.
A. economic; psychological B. social; psychological C. economic; social D. psychological; economic
Data for an economy show that the unemployment rate is 6 percent, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are unemployed this economy?
A. 43.2 million B. 12.0 million C. 18.0 million D. 28.8 million