Which of the following would supply-side economists advocate?
I. reducing tax rates in order to encourage people to work more
II. providing investment tax credits to stimulate capital formation spending
III. increasing government spending
IV. increasing transfer payments to those who want to be retrained for employment
A) I, II, III, and IV
B) I, II, and III only
C) I, II, and IV only
D) I and II only
Answer: D) I and II only
You might also like to view...
The figure above illustrates Mary's production possibilities frontier. If Mary wants to move from point b to point c, she must
A) improve technology. B) increase the accumulation of capital. C) give up some of good Y in order to obtain more of good X. D) give up some of good X in order to obtain more of good Y.
Which term below refers to "the accumulation of goods produced in the past that are being used in the present to produce new goods and services"?
a. inventories b. products c. factors of production d. capital
In 2008, commercial banks' share of the U.S. credit market changed as a result of
A) commercial banks that experienced significant difficulties resulting from real estate investments applied for status as investment banks. B) investment banks that experienced significant difficulties resulting from real estate investments applied for status as commercial banks. C) increasing returns on real estate investments led commercial banks to expand. D) increasing returns on real estate investments led investment banks to expand.
In product markets:
a. Businesses sell resources to households b. Businesses sell goods and services to households c. Households sell products to business firms d. Households sell resources to business firms