Which of the following statements concerning higher marginal tax rates is correct?
A. They discourage work effort and make fewer people eligible for welfare benefits.
B. They discourage work effort and make more people eligible for welfare benefits.
C. They encourage work effort and make more people eligible for welfare benefits.
D. They encourage work effort and make fewer people eligible for welfare benefits.
Answer: A
You might also like to view...
If the total population is 200 million, the labor force is 100 million, and 92 million workers are employed, then the unemployment rate would be
A. 8%. B. 6%. C. 4%. D. 10%.
Which of the following statements is true?
A) A buyer who sets a price so that he can purchase any amount of a good he wants at a fixed price, if he has the money to pay for it, is called a price leader. B) All buyers in a perfectly competitive market set prices to compete in their market. C) The relative prices of goods do not affect a consumer's buying decision. D) A consumer in a perfectly competitive market buys only a tiny fraction of the total amount produced.
The demand for movies is unit elastic if
A) a 5 percent decrease in the price leads to an infinite increase in the quantity demanded. B) a 5 percent increase in the price leads to a 5 percent decrease in the quantity demanded. C) any increase in the price leads to a 1 percent decrease in the quantity demanded. D) a 5 percent increase in the price leads to a 5 percent increase in total revenue.
Since Norway has close trading links with the euro zone
A) a small reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly. B) a small reduction in its price will lead to a decrease in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly. C) a small reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is small relative to Norway's output. Thus, full employment can be restored fairly quickly. D) a big reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly. E) a big reduction in its price will lead to a decrease in euro zone demand for Norwegian goods that is small relative to Norway's output. Thus, full employment can be restored fairly quickly.