The Laffer curve is based on the idea that if the tax rate is sufficiently high, then raising it even more will actually reduce total tax revenues. According to Laffer, this happens because the growing tax rates reduce economic activity at an even faster rate
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is a TRUE statement?
A) The most important source of economic growth is the rate of population growth since a growing population stimulates demand for goods and services, and provides the labor to produce the goods and services. B) The most important sources of economic growth are the new ideas generated by entrepreneurs in an economic system that permits them to capture the rewards of their entrepreneurial activities. C) The most important sources of economic growth are the quantity and quality of the land and other natural resources a country controls. D) The most important source of economic growth is the extent to which the government directly enters into decisions where research and development activities should be directed and who should be involved in research and development activity.
Total fixed cost
A. varies with the level of output. B. has a downward-sloping curve. C. has an upward-sloping curve. D. is constant at all levels of output.
A vector autoregression
A) is the ADL model with an AR process in the error term. B) is the same as a univariate autoregression. C) is a set of k time series regressions, in which the regressors are lagged values of all k series. D) involves errors that are autocorrelated but can be written in vector format.
The monopolist's input demand curve is equal to its
A) variable cost curve. B) marginal cost curve. C) average cost curve. D) marginal revenue product curve.