The higher the marginal tax rate for a given welfare program, the greater the damage to the work incentives of recipients, ceteris paribus.
Answer the following statement true (T) or false (F)
True
A high marginal tax rate forces recipients to give up most or all of their benefits if they choose to work.
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In the long run,
a. all of the firm's input quantities are variable. b. the firm can vary the quantities of some but not all inputs. c. managers become less efficient. d. the total cost of producing any given level of output is greater than or equal to the short-run total cost of producing that level of output.
A key reason why pollution and other negative externalities arise is because there are no practical, enforceable property rights to open-access resources such as the air and the ocean
Indicate whether the statement is true or false
The adjustment back to a long-run equilibrium after a sudden decrease in aggregate demand:
A. happens very quickly, leading to a temporary decrease in the unemployment rate. B. happens very quickly, leading to a temporary increase in the unemployment rate. C. takes a long time, during which the economy is growing very rapidly and very few people are unemployed. D. takes a long time, during which the economy is not growing much and many people are unemployed.
Which fiscal policy would be the most expansionary?
A. A $40 billion tax cut B. A $20 billion tax cut and $20 billion increase in government spending C. A $40 billion increase in government spending D. A $10 billion tax cut and $30 billion increase in government spending