The main disagreement among economists about the Laffer curve is about whether
A. increases in taxes will decrease GDP.
B. the effect of tax decreases on GDP will be so big as to raise government revenues when taxes are cut.
C. cutting marginal tax rates will increase the incentive to work.
D. the government will collect maximum tax revenue at a 50% tax rate.
B. the effect of tax decreases on GDP will be so big as to raise government revenues when taxes are cut.
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The above figure is referred to as a(n)
A) trade-off curve. B) opportunity curve. C) production possibilities curve. D) scarcity-shortage curve.
When the Fed buys U.S. government securities from a member bank, that bank's excess reserves, required reserves, and total reserves all increase
a. True b. False Indicate whether the statement is true or false
Given the characteristics: (1) many buyers and sellers, (2) free entry and exit, (3) perfect information, and (4) heterogeneity of products, monopolistic competition and perfect competition share
a. (1) and (4). b. (1), (2), and (3). c. (2) and (4). d. (2), (3), and (4).
Millionaires tend to be older than the general population because
a. the earnings of most people peak during the retirement phase of life. b. older workers generally have more education than younger workers. c. many achieve millionaire status by saving from a relatively modest income, and this will take a lengthy period of time. d. older people have less to do, and therefore, they have more time to come up with innovative ideas