1- The Economic Freedom of the World index indicates that countries with more economic freedom

a.have lower levels of economic growth.

b.have higher levels of per capita income.

c.generally impose high tariffs and other trade restrictions that protect domestic employment.

d.are mostly large countries with vast natural resources.

2- What will be the effect of an increase in the payroll tax rate?

a.Businesses will have lower profits, but output and employment will be unaffected.

b.The cost of hiring workers will increase, resulting in a decline in employment.

c.The cost of hiring workers will decline and employment will increase.

d.Tax revenues will increase, but there will be no adverse impact on employment.

3- In general, people who have a lot of money in savings at retirement

a.made a lot of money later in life and invested it well.

b.saved very little during their working years.

c.budgeted for savings early in life and, consequently, their income rose in part due to the earned compounded interest.

d.were stingy throughout their life and missed out on much of the enjoyment of life.