High marginal tax rates, such as those instituted during the Great Depression, will
a. increase the incentive of people to earn.
b. lead to a proportional increase in tax revenue and a reduction in the size of the budget deficit.
c. cause people to work, earn, and invest less than would be the case if marginal tax rates were lower.
d. attract workers from other countries where tax rates are lower.
C
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When the Fed buys government securities, the immediate effect of the purchase is that banks'
A) reserves decrease. B) loans decrease. C) reserves increase. D) assets increase. E) deposits increase.
John Amaker owns orange groves and hires pickers for a two-week period as shown in Table 7-3.Table 7-3 Pickers Oranges Picked 1 1,000 2 2,000 3 3,000 4 3,900 5 4,700 6 5,400 7 6,000 8 6,200 9 6,000 In Table 7-3, the marginal physical product of the fifth picker is
A. 4,700. B. 900. C. 800. D. 3,900.
Louise Bakery sells cupcakes that have an equilibrium price of $5.00 per cupcake and an equilibrium output of 300 cupcakes. Which of the following is likely to be true when the government imposes a tax of $0.75 per cupcake? a. Producer and consumer surplus will increase. b. Producer and consumer surplus will decline. c. Equilibrium price will decrease
d. Equilibrium output will increase.
Residents of cities with a reputation for good weather, ceteris paribus,
A) pay a higher price for housing because the demand for housing is higher. B) pay a higher price for housing because the supply of housing is higher. C) pay a higher price for housing because the supply and demand for housing is higher. D) pay the same for housing as they would in cities with a reputation for bad weather.