Which of the following best describes supply-side economics?
A) Education affects the incentive to work, save, and invest and, therefore, aggregate supply.
B) Tax rates, particularly marginal tax rates, affect the incentive to work, save, and invest and, therefore, aggregate supply.
C) Labor productivity affects aggregate supply.
D) Education affects labor productivity which affects aggregate supply.
B
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When industrial activity increases,
A) GDP decreases because of pollution. B) pollution does not necessarily increase. C) health and life expectancy decrease. D) and real GDP increases, it is the case that in all nations fewer resources are devoted to protecting the environment. E) the increase in real GDP is partially offset by the increase in pollution.
Most economists would agree that "saving jobs" is a valid reason for restricting trade
Indicate whether the statement is true or false
Which of the following statements presents accurate information about the Napoleonic Wars (1793-1815)?
a. The major adversaries in the Wars were England and Canada. b. The peace treaty that ended the Wars is known as the Essex Decision. c. The Wars led to increased demand for American shipping services. d. During the temporary peace of 1801-1803, demand for U.S. re-exports increased.
One assumption of the perfectly competitive model is free entry and exit. This assumption most directly leads to the implication that:
A. positive economic profit is only possible in the short run. B. a long-run equilibrium cannot be achieved. C. firms will compete on the basis of better service rather than lower prices. D. firms will have to spend money on advertising.