According to supply-side economists, when operating in the upper portion of the Laffer curve, tax cuts result in ___________.
Fill in the blank(s) with the appropriate word(s).
tax revenue increases
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Suppose a decrease in demand causes the price to decrease from $4 to $3 and the quantity to decrease from 1,000 to 700. Using the midpoint method, the elasticity of supply equals
A) 0.81. B) 1.24. C) 2.83. D) 0.18. E) None of the above answers is correct.
According to the text, critics point out that the costs incurred by firms due to regulations
A) increase production costs. B) lower production costs to the shutdown point. C) reduce taxes too far. D) none of the above.
If by international treaty the ratio of the price of services to the price of goods was held at 1.5, then
Suppose Canada can produce either 120 units of goods, 80 units of services, or any linear combination thereof. Mexico can produce 90 units of goods, 50 units of services, or any linear combination thereof. a) neither country would benefit from trade b) both countries will benefit from trade c) only Canada would benefit from trade; Mexico would lose d) only Mexico would benefit from trade; Canada would lose e) Mexico would benefit from trade; Canada would neither gain nor lose
Suppose that you decide to purchase either stocks or bonds of a particular corporation and you also prefer to receive some returns from the securities every year. Which should you buy - stocks or bonds? Why?
What will be an ideal response?