Reducing the marginal tax rate on income will
A) raise the return to entrepreneurship and encourage the opening of new businesses.
B) increase the after-tax return on saving, and encourage saving.
C) reduce the tax wedge faced by workers and increase labor supplied.
D) All of the above are correct.
C
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Private markets will lead to a ________ vaccination rate because:
A. suboptimally low; the external benefit of being vaccinated would not fully be taken into account by decision makers. B. suboptimally high; the external cost of being vaccinated would not fully be taken into account by decision makers. C. socially optimal; price serves as a signal of marginal benefit and marginal cost. D. inequitable; health care services should not be provided based on ability to pay.
An investor has to choose between stocks A&B, each selling for $10 . Stock A, can either increase in price to $12, with a 50% probability or stay at $10 with a 50% probability. Stock B can either increase in price to $15 with a 50% probability or go down to $7 with a 50% probability. Which of the stocks would the investor choose
a. Stock A b. Stock B c. None of the stocks d. The investor would exit the market
In general, when the price of a variable factor of production increases:
A. marginal cost rises. B. the profit-maximizing price falls. C. the profit maximizing level of output rises. D. total cost falls.
Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow. Figure 8.5 Refer to Figure 8.5. If seven drones are produced, average fixed costs are
A. $7.14. B. $14.29. C. $20. D. $21.43.