According to the Laffer curve, a decrease in the tax rate may decrease tax revenues.
Answer the following statement true (T) or false (F)
True
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Which of the following products witnessed a high growth in the number of producers within a few years of market introduction, but was followed by a fast and substantial shakeout?
a. Tortilla b. Penicillin c. Livestock d. Fastfood
If price exceeds marginal cost, we say that a firm receives
a. Extraction surplus b. User costs c. Consumer surplus d. Royalty payments e. Resource rents
Contrast a positive supply shock with a negative supply shock.
a. A positive supply shock increases short-run aggregate supply, whereas a negative supply shock decreases short-run aggregate supply. b. A positive supply shock is an expected event, whereas a negative supply shock is an unexpected event. c. A positive supply shock is permanent, whereas a negative supply shock is temporary. d. A positive supply shock causes the short-run aggregate supply curve to shift leftward, whereas a negative supply shock causes the short-run aggregate supply curve to shift rightward.
For an employer biased against African Americans, the discrimination coefficient d:
A. will decrease if the employer becomes more prejudiced against African Americans. B. must equal the actual ratio of African-American to white wage rates. C. measures the amount an employer is willing to pay to hire a white over hiring an African- American worker. D. varies inversely with the actual African-American-white wage ratio.