Recent legislation provides parents with a substantial reduction in their personal income tax liability for each child that they have. The economic way of thinking indicates that legislation of this type will
a. make it more costly for parents to provide for their children.
b. reduce the value of children to their parents and, therefore, lead to a reduction in the birth rate.
c. reduce the after-tax cost of raising children and, therefore, increase the birth rate.
d. exert no impact on either the cost of raising children or the birth rate since having children is a not an economic activity.
C
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What is the difference between an "increase in supply" and an "increase in quantity supplied"?
A) There is no difference between the two terms; they both refer to a movement along a given supply curve. B) An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased. C) There is no difference between the two terms; they both refer to a shift of the supply curve. D) An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price.
In real-world markets
a. economic efficiency is rare because making voluntary transactions is difficult b. economic efficiency is rare because Pareto improvements are difficult to make c. economic efficiency is best thought of as a continuum d. perfect competition is an impediment to economic efficiency e. every possible Pareto improvement is exploited
Some of the factors that can shift the short-run aggregate supply curve can also cause a shift in the long-run aggregate supply curve
Indicate whether the statement is true or false
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 30 B. exactly 60 C. fewer than 30 D. more than 30