Supply-side economists argue that
A. higher tax rates can lead to lower tax revenues.
B. lower tax rates lead to a drop in real Gross Domestic Product (GDP).
C. higher tax rates lead to increased productivity.
D. lower tax rates always lead to lower tax revenues.
Answer: A
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It is not uncommon for business professors to make a statement such as the following: "While economists are happy in their never-never land of economic theory, we business professors seriously study facts of the real world"
According to your textbook, the statement is A) generally true. B) misleading; even business professors rely upon theories to discriminate among and make sense out of the facts they choose to study. C) confused, because in actuality it is the business professors who are trapped in the never-never land of theory, while the economists seriously study real-world facts without using theories. D) false, because economics and business are one and the same discipline.
In the present, most of the exports from China are
A) manufactured goods. B) services. C) primary products including agricultural. D) technology intensive products. E) overpriced by world market standards.
The present value formula makes it apparent that:
A) a decline in the interest rate will cause a decision maker to weigh recent period returns relatively more heavily than before the decline. B) an increase in the interest rate will cause a decision maker to weigh distant (or future) returns relatively more heavily than before the increase. C) the present value of a fixed sum decreases as the time until it is to be paid increases. D) all of the above E) both A and C.
For individuals who are holding money or fixed dollar value assets, inflation has the effect of: a. improving their ability to purchase goods and services with those dollars. b. reducing their ability to purchase goods and services with those dollars. c. increasing the purchasing power of those dollars
d. demonstrating the interest rate effect.