Sources of market failure include
A. public goods.
B. external costs.
C. external benefits.
D. All of the above are correct.
Answer: D
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A progressive tax is a tax that taxes income so that the average tax rate increases with income
Indicate whether the statement is true or false
According to supply-side theory, a cut in taxes will tend to cause ________
A) a decline in the amount of total tax revenue collected B) no change in the amount of total tax revenue collected C) an increase in the amount of total tax revenue collected D) individual workers to devote more time to leisure activities
The textbook points out that rent controls have
A) benefited upper-income or existing tenants. B) had no effect on the market for housing. C) greatly benefited the homeless. D) attracted increases in low-income housing.
According to economists, productivity can be increased by
a. improving the education of workers b. restricting trade with the foreign countries c. raising minimum wages d. raising union wages