According to the Laffer curve,
a. an increase in tax rates will always cause tax revenues to increase.
b. when marginal tax rates are high, an increase in tax rates is likely to cause tax revenues to increase.
c. when marginal taxes are low, an increase in tax rates will probably cause tax revenues to decline.
d. when marginal tax rates are high, a reduction in tax rates may increase tax revenue.
D
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If the minimum wage is above the equilibrium wage rate, then an increase in the minimum wage ________ employment and ________ unemployment
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; increases
Consider the following short-run production function: q = 5 - 1/3 . At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?
What will be an ideal response?
Assuming that the demand for a good has decreased and the supply of a good has increased by the same amount, then:
a. The change in price is determinate but the change in quantity is indeterminate. b. The change in quantity is determinate but the change in price is indeterminate. c. Neither the change in price nor the change in quantity will be indeterminate. d. Both the change in price and the change in quantity will be indeterminate.
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, these flows would have had the following effect on the financial account and monetary base
a. Financial account would rise and monetary base would fall. b. Financial account would not change and monetary base would fall. c. Financial account would fall and monetary base would not change. d. Financial account would fall and monetary base would fall. e. Financial account would fall and monetary base would rise.