Supply-side policy is based on the assumption that people's economic behavior is not affected by taxes
a. True
b. False
Indicate whether the statement is true or false
False
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The above table has data from the nation of Media. Based on these data, when disposable income is $8.0 trillion, saving is
A) -$1.5 trillion. B) $1.5 trillion. C) $7.5 trillion. D) $0.5 trillion. E) -$0.5 trillion.
Refer to Figure 22.2 below. Suppose that the supply of land is constant at L acres, and Price per acre is $400. In addition, the before-tax demand for land can be characterized by the equation P = 500 - 2L, where L is the acres of land and P is the price.
(A) What is the constant supply of land (L) in the market?
(B) If the after-tax demand curve, P , can be written as P = 400 - 4L, what is P , and how
much tax revenue is generated?
If a student achieves a high SAT score, this
A) sends a signal to a college that the applicant will be a good college student. B) does not act as a screening device. C) is a moral hazard. D) provides a college with no information.
Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. If the government places a $1.20 tariff on imported units of this good, by how much is producer surplus increased?
A. $3,200 B. $3,600 C. $5,400 D. $3,000