The one uncontroversial statement at the foundation of "supply-side" theory is that
A) cutting income tax rates raises the tax base by enough to increase tax revenues.
B) income taxes reduce the after-tax reward to work and saving.
C) reducing income taxes would significantly increase work effort.
D) reducing income taxes would significantly increase personal saving.
B
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A ________ is a congressional agreement about total outlays, spending by major category, and expected revenues, that guides spending and revenue decisions by the many congressional committees and subcommittees
a. continuing resolution b. budget resolution c. disclaimer vote d. filibuster
Which is more preferred between a cash gift and an in-kind gift?
A. Both are equally preferred. B. A cash gift. C. An in-kind gift. D. None of the statements is correct.
Consider a monopolist attempting to engage in limit pricing with total costs C(Q) = 100 + 2Q. The market (inverse) demand for its product is P = 100 ? 2Q. Currently, the monopolist produces 30 units of output. Assuming the potential entrant has the same cost structure as the incumbent monopolist, is it profitable for the entrant to produce 10 units of output?
A. No, since the market price of $20 is less than the average total cost of producing 10 units. B. No, since the market price of $50 is less than the average total cost of producing 10 units. C. Yes, since the market price of $50 is greater than the average total cost of producing 10 units. D. Yes, since the market price of $20 is greater than the average total cost of producing 10 units.