One part of the supply-side argument is that
A) lower marginal tax rates are required to induce Congress to reduce government spending.
B) lower marginal tax rates can increase total tax revenues.
C) the marginal tax rate should be set at 50 percent.
D) the relevant aggregate supply curve is close to horizontal.
B
You might also like to view...
A profit-maximizing firm will continue to expand output:
A. as long as the revenues from the production and sale of an additional unit exceeds the average cost of the unit. B. until the average cost of producing the good or service is at a minimum. C. as long as the revenues from the production and sale of an additional unit exceeds the marginal cost of the unit. D. until the marginal cost of producing a good or service is at a minimum.
Which of the following statements are true? (Check all that apply.)
A. Equilibrium is attained when prices are allowed to respond to market pressure. B. A binding price ceiling will always cause the quantity demanded to exceed the quantity suppled. C. A government price control can be used to bring markets into equilibrium. D. A government price control will always cause the quantity demanded to exceed the quantity supplied.
In analyzing land rent, David Ricardo constructed a model based on
A. perfectly elastic demand for land. B. land being available in infinite quantities. C. the supply of land being perfectly inelastic. D. a perfectly elastic supply of land.
The decision by firms of the quantity of output to supply is based on
A. government oversight. B. the price of inputs. C. the price of output. D. techniques of production available.