Economist B believes that if tax rates are cut, tax revenue is likely to fall. This economist most likely believes that the percentage decrease in tax rates will ______________________________ percentage rise in the tax base
A) be larger than the resulting
B) be equal to the resulting
C) be smaller than the resulting
D) occur long after the
E) a and d
A
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If a firm is using optimal input proportions, it is minimizing its costs.
Answer the following statement true (T) or false (F)
The largest spending category for state governments is
A) welfare. B) health care. C) education. D) highway construction.
Assume that an unemployed person expects inflation to be 4.5 percent. In reality, inflation turns out to be 2.9 percent. If wage expectations lag behind actual price changes:
a. job offers below the reservation wage will decline, and the unemployment rate will rise. b. job offers above the reservation wage will rise, and the unemployment rate will fall. c. job offers above the reservation wage will decline, and the unemployment rate will rise. d. job offers above the reservation wage will decline, and the unemployment rate will fall. e. job offers below the reservation wage will increase, and the unemployment rate will fall.
A union may attempt to obtain stricter certification requirements or longer apprenticeships. These changes would raise workers' wages because they:
A. create unnecessary unemployment. B. shift in labor supply curve leftward. C. decrease the marginal product of labor. D. reduce management's use of featherbedding.