An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector) will:
A. decrease public saving.
B. increase private saving.
C. increase public saving.
D. reduce investment in new capital equipment.
Answer: C
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Refer to Figure 28-2. At which point is the unemployment rate equal to the natural rate of unemployment?
A) A B) B C) C D) There is insufficient information on the graph to answer this question.
The division of a resource's earnings between economic rent and opportunity cost depends on the resource owner's
a. elasticity of labor supply b. price elasticity of labor demand c. income elasticity of labor demand d. cross-price elasticity of demand e. marginal revenue product
NAFTA benefited Canadian consumers because:
a. of higher wages and more travel opportunity. b. of lower wages but also lower taxes. c. of lower prices but lower quality. d. of lower prices and increased variety.
When the addition to a monopolist's total profit is negative from selling another unit, then it follows that
A. MR > MC. B. MR > ATC. C. MR = MC. D. MR < MC.