The optimal tax is difficult to determine because although revenues rise and fall as the size of the tax increases, deadweight loss continues to increase
a. True
b. False
Indicate whether the statement is true or false
True
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Economists who believe the supply-side effects of tax cuts are small essentially believe that
A) tax cuts mainly affect aggregate demand. B) tax cuts will result in relatively small changes in the price level. C) tax cuts mainly affect aggregate supply. D) tax cuts will increase the quantity of labor supplied.
Command-and-control regulation, as compared to incentive-based regulation, is:
a. efficient in the short run and in the long run. b. efficient in the short run, but not in the long run. c. inefficient in the short run, but efficient in the long run. d. inefficient in the short run and long run.
A . Explain how a change in technology will affect labor productivity. b. Give an example of a change in technology that increased labor productivity
Firefighters and other municipal employees can have a key advantage when unionizing because
A. municipal employees, such as firefighters, tend to be much more aggressive negotiators. B. municipal employers, unlike businesses, are unable to move to another state to avoid unionization. C. municipal employers, unlike private-sector employers, are always strongly pro-union. D. municipal employers tend to be much less inexperienced negotiators.