According to supply-side theorists, a decrease in marginal tax rates will provide the incentive to
A. Invest less.
B. Reduce regulation.
C. Work less.
D. Produce more.
Answer: D
You might also like to view...
In economics, the concept of opportunity cost is:
a. negated by ensuring that the government has a role in a capitalist society. b. defined to be the highest-valued alternative that must be forgone when a choice is made. c. best illustrated by knowing why consumers choose one good over another. d. quantifiable only if you know the real dollar price of the goods and services you are giving up to consume something. e. the methodology that government economists use to determine the total amount of the national debt.
Many states have usury laws, which:
a. impose an upper limit on the interest rate that lenders can charge. b. impose a lower limit on the interest rate that lenders can charge. c. impose limits on how products can be used by consumers. d. impose an upper limit on the quantity of a product that can be sold.
The quality adjustment bias of the CPI refers to the failure of statisticians to:
A. take into account price changes in goods and services. B. allow for the possibility that consumers switch from products whose prices are rising. C. take into account improvements in goods and services. D. allow for the possibility that consumers switch stores at which they shop.
Which of the following is an assertion of the Heckscher-Ohlin model?
A) The wage-rental ratio is determined by relative product prices. B) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good. C) In the long-run, labor is mobile and capital is not. D) Factor price equalization will occur only if there is costless mobility of all factors across borders. E) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.