In 1981, the US government passed a law that significantly lowered tax rates on high-income individuals. The premise was that high tax rates deter high-income individuals from working and investing, reducing the growth of the economy. This is an example of
A. the equality-efficiency trade-off.
B. usury.
C. the effects of budget deficits on future generations.
D. the cost disease of the public sector.
E. the importance of externalities.
Answer: A
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The above figure shows the demand and cost curves facing a monopoly. The monopoly maximizes profit by selling
A) 0 units. B) 25 units. C) 50 units. D) 75 units.
Recent income distribution figures in the United States show
A) slightly more inequality. B) less inequality. C) greater equity. D) less equity.
Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job
a. True b. False Indicate whether the statement is true or false
Volkswagen increases the price of a car produced exclusively for export to North America. Which German price index is affected?
A. the CPI B. the GDP deflator C. both the CPI and the GDP deflator D. neither the CPI nor the GDP deflator