Supply-side economists believe that high marginal income tax rates ______.
a. decrease tax evasion
b. increase government revenue
c. decrease the incentive to work
d. increase total investment
c. decrease the incentive to work
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When tax revenues minus outlays is i. positive, the government has a budget surplus. ii. negative, the government has a budget deficit. iii. zero, the government has a balanced budget
A) i, ii, and iii B) i and ii only C) ii and iii only D) i only E) iii only
Which of the following statements regarding generic drugs and name-brand pharmaceuticals is false?
A) Pharmaceutical companies have spent large amounts of time and money in their attempts to reduce competition from generic drugs. B) Generic drugs have the same chemical content as the corresponding branded drug. C) On average, a generic drug can reduce U.S. sales of a branded drug by as much as 50 percent in the first six months. D) Pharmaceutical companies need only to renew the patents they have on certain drugs to protect them from competition by generic drugs.
A country with a lot of land relative to its population may have a comparative advantage in:
A. capital-intensive activities. B. labor-intensive activities. C. land-intensive activities. D. technology-intensive activities.
Critics of macroeconomic stabilization policies argue that
a. economists are unable to influence policy. b. stabilization policies often do more harm than good. c. stabilization theory has no practical effect. d. policy makers need practical advice, not theory.