If the absolute value of the tax elasticity of supply is 2.0, a tax increase of 10 percent will decrease output by
A. 5 percent and increase tax revenues.
B. 5 percent and decrease tax revenues.
C. 20 percent and increase tax revenues.
D. 20 percent and decrease tax revenues.
Answer: D
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Younger workers are:
A. Much more likely to migrate than older workers because younger workers have lower moving costs B. Much less likely to migrate than older workers because younger workers have more close friends at home C. Much more likely to migrate than older workers because younger workers have more human capital than older workers D. Much less likely to migrate than older workers because younger workers do not have as much experience
Explain the effect of right-to-work laws on the collective bargaining power of labor unions
Using the production function Real GDP = T (L, K), define the term production function and describe what each of the variables (T, L, and K) represents. When graphed with Real GDP on the vertical axis and labor on the horizontal axis, which variable(s) can shift the production function and which variable(s) can cause a movement along the production function?
The substitution effect causes a consumer to buy less of a product when the price increases because the
A. product is now less expensive compared to similar products B. product is now more expensive compared to similar products C. consumer's real income has decreased D. Consumer's real income has increased E.. consumer will buy more inferior goods and fewer normal goods