According to supply-side economists, lower marginal tax rates will not necessarily lead to lower tax revenues because
A. the lower marginal tax rates will be applied to a growing tax base due to a higher output level.
B. the crowding out effect does not apply to taxes.
C. the aggregate supply curve will shift inward to the left if the tax rates are lowered.
D. lower tax rates have no effect on the opportunity cost of labor.
Answer: A
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A single-price monopolist will find when it produces its profit-maximizing amount of output that
A) price exceeds marginal revenue. B) price exceeds marginal cost. C) marginal revenue equals marginal cost. D) All of the above occur at the profit-maximizing output level.
Importing a foreign good increases the __________ the foreign currency and increases the __________ the currency of the importing country in the foreign exchange market
A) demand for; demand for B) demand for; supply of C) supply of; demand for D) supply of; supply of
Give a short concise definition for the following terms and explain their relationship to the study of economics. a. Marginal physical product b. Marginal revenue product c. Law of diminishing returns d. Economies of scale
What will be an ideal response?
Which of the following is not included as "net income" in the U.S. balance of payments?
a. Income paid by a U.S. company to foreign consultants. b. Profits earned by U.S. companies from foreign operations. c. Foreign dividends received by U.S. residents. d. Profits earned by U.S. companies from foreign operations and reinvested abroad. e. All the above are includedas net income in the U.S. balance of payments.