An increase in the marginal income tax rate will increase the quantity of labor supplied.
Answer the following statement true (T) or false (F)
False
A higher marginal income tax rate reduces after-tax wages and thus reduces the incentive to supply labor.
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It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexico's population was 104 million and GDP was $839 billion. Per GDP person ________ by ________ between 2006 and 2007 in Mexico
A) increased; $1038 B) increased; 5 percent C) decreased; $2013 D) decreased; 5 percent
Refer to Figure 26-11. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely
A) decrease interest rates. B) not change interest rates. C) decrease the inflation rate. D) increase interest rates.
Criteria for rationing goods and resources must be established because of
a. the law of comparative advantage. b. the use of capitalism as a form of economic organization. c. the inability of politicians to develop efficient forms of economic organization. d. scarcity imposed by nature.
When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,
a. consumer surplus increases and total surplus increases in the market for that good. b. consumer surplus increases and total surplus decreases in the market for that good. c. consumer surplus decreases and total surplus increases in the market for that good. d. consumer surplus decreases and total surplus decreases in the market for that good.