The idea that all aspects of economic behavior, such as labor supply, saving, and investment, respond to economic incentives, especially tax rates, is known as
A. supply-side economics.
B. New Keynesian economics.
C. new classical economics.
D. tax-structured classical economics.
Answer: A
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When it comes to pollution problems, the polluter and the victim can bargain to arrive at an outcome that benefits both parties
Indicate whether the statement is true or false
Regarding the nation's money supply, the Federal Reserve
A. precisely sets the amount of money in circulation in consultation with the Congress. B. gives the U.S. Treasury the authority to print as much as it wishes. C. has no ability to influence its magnitude or its rate of growth. D. has a major impact on its rate of growth.
There is no role for government in a free enterprise economy such as the United States.
Answer the following statement true (T) or false (F)
Which of the following has a tendency to raise the unemployment rate?
A) reducing unemployment insurance in an economy B) offering wages at the market-clearing rate C) implementing a minimum wage in an economy D) reducing labor union membership in an economy