Most economists have reached the following conclusion about supply-side economics.
A. Supply-side tax cuts are likely to reduce income inequality.
B. Supply-side tax cuts are almost certain to lead to smaller budget deficits.
C. Supply-side tax cuts are likely to widen income inequality.
D. None of these.
Answer: C
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The production possibilities frontier has a tendency to bow outward from the origin.
Answer the following statement true (T) or false (F)
Movements along the demand curve are called changes in
a. demand b. opportunity costs c. quantity demanded d. the substitution effect e. preferences
When will a shortage occur in a market?
a. When the actual price is lower than the equilibrium price b. When quantity supplied is greater than the equilibrium quantity c. When the quantity that consumers are willing and able to purchase decreases d. When the quantity available at zero price is insufficient to meet demand e. When a price floor is set in the market
Competition best describes a market failure that provides an economic rationale for government intervention in markets
Indicate whether the statement is true or false