Which of the following tax changes would a supply-side economist be most likely to favor?
a. eliminating an investment tax credit
b. an increase in the capital gain tax
c. lower marginal income tax rates
d. an increase in the personal income tax rate for high-income individuals
c
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In the 1990 Clean Air Act Amendments,
a. Title IV uses a strict command-and-control approach to regulate sulfur dioxide b. market-based approaches are integrated in certain of the titled sections c. market-based policies predominate over command-and-control initiatives d. there were no provisions to control ozone depletion
The MR = MC profit maximization rule applies:
A. only to monopolies. B. only to purely competitive firms. C. only when the firm is a "price taker." D. to firms in all types of industries.
The income and wealth gap in the United States has
A. decreased in recent years. B. stayed the same in recent years. C. increased in recent years. D. helped reduce the federal budget deficit.
In economic terms, tariffs are preferred to quotas because
A) domestic manufacturers gain more producer surplus. B) there is less loss of consumer surplus. C) quotas create a greater production inefficiency. D) given the way quotas are usually administered, tariffs cause a smaller net national welfare loss.