"Lower marginal tax rates encourage people to work, save, and invest, resulting in more output and a larger tax base." This statement most closely reflects which of the following schools of economic thought?
a. Keynesian.
b. Adam Smithian.
c. Aggregate demandian.
d. Supply-side economics.
d
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Suppose that a disease that affects people who consume beef has been discovered in the United States. One likely result is:
A. an increase in buyers' reservation prices for beef. B. a decrease in demand for beef. C. a decrease in demand for chicken. D. a decrease in the quantity demanded of beef.
If a poor family has three children in public school and a rich family has two children in private school, the ability-to-pay principle would suggest that
a. the poor family should pay more in taxes to pay for public education than the rich family. b. the rich family should pay more in taxes to pay for public education than the poor family. c. the benefits of private school exceed those of public school. d. public schools should be financed by property taxes.
A price-discriminating monopoly charges the lowest price to the group that:
A. has the most elastic demand. B. purchases the largest quantity. C. engages in the most arbitrage. D. is least responsive to price changes.
Socialism is an economic system characterized by:
A. private ownership of resources and market decision-making. B. government ownership of resources and centralized decision-making. C. cooperation, sharing, and little central government. D. a complex structure of rules and traditions that dictates decision-making.