In a country with unusually high tax rates, one might expect that ________
A) GDP might be overstated because the government might avoid running surpluses
B) GDP might be understated because its citizens might avoid reporting some of their income
C) GDP might be overstated because the government might raise its outlays
D) GDP might be understated because its citizens might flee the country
E) after tax income should be much higher than that of countries with lower tax rates
B
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Which of the following is most likely to lead to a decrease of 10% in the nominal demand for money?
A) An increase in real income of 5% B) A decrease in real income of 5% C) A decline of 10% in the price level D) An increase of 10% in the price level
The CEOs of three firms in the airlines industry talk to each other about coordinating their ticket pricing. Which concept is exemplified?
a. quotas b. price leadership c. economies of scale d. collusion