Low marginal tax rates discourage work effort but make fewer people eligible for welfare.
Answer the following statement true (T) or false (F)
False
Low marginal tax rates encourage work effort since welfare recipients are not forced to give up most or all of their benefits.
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According to the simple circular flow concept, whenever planned investment is greater than planned saving during a period of less than full employment, there is a tendency for
a. total output to remain stable. b. prices to rise. c. employment to increase. d. inventories to accumulate.
In the aggregate demand and supply model, the:
a. vertical axis measures the average price level. b. horizontal axis measures real GDP. c. aggregate supply curve is vertical at full-employment real GDP. d. All of these.
Goods used to produce other goods are known as
a. transitional goods b. durable goods c. nondurable goods d. services e. intermediate goods
One should be especially wary of the national-security argument for restricting trade when that argument is made by
a. representatives of industry. b. representatives of the defense establishment. c. members of households. d. foreign government officials.