If the tax system is made more progressive, the after-tax wages of high-income workers would _____
a. fall
b. rise
c. stay constant
d. rise or fall depending upon job market conditions
a
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
If a firm is a price taker, then its marginal revenue will always equal
A) price. B) total cost. C) zero. D) one.
When two goods have negative cross elasticities of demand and negative income elasticities, they are: a. Normal and substitutes
b. Normal and complements. c. Inferior and substitutes. d. Inferior and complements.
When pollution problems arise from a sudden crisis, pollution taxes are a useful form of control
a. True b. False Indicate whether the statement is true or false