According to the Laffer curve, a decrease in the tax rate will increase tax revenue
A. if the economy is at the farthest point out on the curve.
B. if the economy is on the negatively sloped section of the curve.
C. no matter the location of the economy on the curve.
D. if the economy is on the positively sloped section of the curve.
Answer: B
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Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y + L0.5. Assuming a wage rate of $10 per hour, show what happens to the person's labor supply curve when the person wins a lottery prize of $100 per day
What will be an ideal response?
Explain the difference between the Moving Average and Exponential Smoothing approaches to forecasting
What will be an ideal response?
If there are no barriers to entry into an industry
A) short-run economic profits must be zero. B) long-run economic profits must be zero. C) both short-run and long-run economic profits must be zero. D) short-run and long-run profits must still be positive.
The market process ensures that, when all transactions are voluntary, resources get allocated to the use where they are valued the most
a. True b. False Indicate whether the statement is true or false