Supply-side economists focus on the expansion of capacity through lower marginal tax rates and policies to increase production incentives.
Answer the following statement true (T) or false (F)
True
Greater incentives to produce, through lower taxes and less regulation, lead to an increase in aggregate supply, according to the supply-siders.
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John started going for soccer matches after moving in with a roommate who is a huge fan of soccer. This is an example of a(n) ________
A) moral hazard B) adverse selection C) peer effect D) pecuniary externality
According to supply-siders the main consequence of reducing tax rates is
A) increases aggregate demand and the price level. B) increases in aggregate supply. C) increases in aggregate supply and the price level. D) making the aggregate supply curve upward-sloping.
If Jen earns $80,000 a year and pays $16,000 in taxes, and Gary earns $100,000 a year and pays $16,000 a year in taxes, the tax system must be:
A. flat. B. proportional. C. progressive. D. lump-sum.
Which of the following is an example of the First World?
a. The West European countries b. The Middle East countries c. The South Asian countries d. The African countries e. The Latin American countries