Which of the following conclusions about supply-side tax initiatives is accepted by most economists?
A. Supply-side tax cuts are likely to benefit the poor as much as the rich.
B. Supply-side tax cuts will almost certainly lead to smaller budget deficits.
C. Such tax cuts probably will increase aggregate supply quickly, but an increase in aggregate demand will come later.
D. Tax reductions aimed at stimulating business investment are likely to have a greater impact than tax reductions aimed at getting people to work longer hours or save more.
Answer: D
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Non-neutral technological change is more valuable to labor than neutral technological change
What will be an ideal response?
In the case of negative externalities in production, the firm's internal costs:
a. exceed the external costs. b. are less than the external costs. c. equal the external costs. d. understate the true cost of producing the product. e. overstate the true cost of producing the product.
Suppose Vinnie is looking for a month-long vacation rental in San Diego. The first vacation rental Vinnie finds costs $800 per month. If he looks for another vacation rental, there's a 75 percent chance he'll find another one for $800 per month and a 25 percent chance he'll find one for $600 per month. Other than price, all of the vacation rentals are identical. Vinnie's marginal cost of searching for an additional vacation rental is $45. For Vinnie, the expected value of searching for another vacation rental is:
A. $200. B. $5. C. $45. D. $50.
Structural unemployment is:
A. the effect of wages remaining persistently above the market-clearing level. B. a mismatch between the skills workers can offer and the skills that are in demand. C. when workers voluntarily quit their jobs. D. unemployment caused by workers who are changing their location, job, or career.