Explain why an increase in the tax rate can result in lower tax revenues
What will be an ideal response?
According to dynamic tax analysis, consumers may react to a higher tax rate by cutting back on purchases of goods and services included in the tax base. The reduction in the tax base may eventually be sufficiently large so that tax revenues decline.
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In the Solow growth model, the steady state occurs when
A) investment = depreciation. B) depreciation = 0. C) the capital-labor ratio = 1. D) saving = investment.
Which of the following is(are) the main factor(s) spurring economic growth?
A. Improving technology. B. More and better capital. C. More and better labor. D. All of these cause economic growth.
What is defined as an entity which makes product, good or services available to buyer or consumer in exchange of monetary consideration?
A. Seller B. Manufacturer C. Producer D. Buyer or consumer
If Jane works for 6 hours she can rent out 9 apartments, and if she works for 7 hours she can rent out 12 apartments. The marginal benefit of Jane's 7th hour of work equals:
A. 1 apartment B. 9 apartments C. 12 apartments D. 3 apartments