Entrepreneurs tend to take greater risks if low tax rates offer greater after-tax profit potentials. The government's decision to offer low tax rates to entrepreneurs is:
A. providing room for an economic expansion.
B. providing an incentive, in the hopes that more entrepreneurs will take risk and create economic growth.
C. providing a disincentive, in the hopes that more entrepreneurs will avoid risk and not grow.
D. providing a disincentive, in the hopes that entrepreneurs will not get into tax default after assuming too much risk.
B. providing an incentive, in the hopes that more entrepreneurs will take risk and create economic growth.
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For a monopoly, the demand for its product is perfectly elastic at the market price
Indicate whether the statement is true or false
GDP per capita is:
A. highly correlated with quality of life. B. perfectly correlated with quality of life. C. loosely correlated with quality of life. D. negatively correlated with quality of life.
Transferable pollution rights allow a given level of pollution reduction to be achieved: a. at zero cost
b. at higher cost than compliance standards. c. at lower cost than compliance standards. d. at higher cost than a system of pollution taxes.
Unemployment insurance:
A. will not affect the natural rate of unemployment. B. is an explanation for why wages do not reach equilibrium. C. can affect how quickly people find jobs. D. is a mandated federal policy all states must adhere to.