The Laffer curve shows that as tax rates increase
A) initially tax revenues increase, then decrease.
B) tax revenues decrease as the incidence of cheating on tax returns increases.
C) tax revenues increase as more individuals and businesses have to pay taxes.
D) tax revenues remain unchanged.
A
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In the 1930s and 1940s, the Technicolor company was able to leverage its bargaining power over the movie industry because Technicolor was the sole producer of cameras and films needed to produce color films
Indicate whether the statement is true or false
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and reserves account in the context of the Three-Sector-Model? a. The GDP Price Index rises and reserves account becomes more negative (or less positive)
b. The GDP Price Index falls and reserves account remains the same. c. The GDP Price Index and reserves account remain the same. d. The GDP Price Index rises and reserves account remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
In a prisoner's dilemma, the Nash Equilibrium might not have a dominant strategy for either player
a. True b. False Indicate whether the statement is true or false
Refer to Figure 6.6, which shows a market for taxi medallions. Without any limit to the number of medallions (taxi licenses), the producer surplus is represented by:
A. area ABF. B. area ACI. C. area DEH. D. area CEI.