Income tax revenues rise as income tax rates fall. It follows that the
A) percentage cut in the tax rate is greater than the percentage increase in the tax base.
B) percentage cut in the tax rate is less than the percentage increase in the tax base.
C) percentage cut in the tax rate is equal to the percentage increase in the tax base.
D) marginal tax rate is equal to the average tax rate
E) b and d
B
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The aggregate demand curve shows the
A) total amount of nominal goods that the participants in the economy want to purchase. B) amount of goods producers will produce as production costs fall. C) total amount of real goods that foreigners want to purchase. D) total amount of planned expenditures on goods and services at each possible price level.
When production generates a negative externality, the true cost of production is the
A) public cost of production. B) private cost of production. C) average cost of production. D) social cost of production.
The difference between the gross public debt and the net public debt is
A) the sum of all previously accumulated government budget deficits and surpluses. B) the sum of all previously issued U.S. government securities that have been purchased by foreign residents. C) all private-sector borrowing from private sources. D) all government interagency borrowing.
Elasticity is a measure of the responsiveness of change in quantity demanded to a change in price
a. True b. False Indicate whether the statement is true or false