"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. Marxist
D. Supply-side economics
Answer: D
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If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $3 and they are charging the profit-maximizing retail price of $9, what is wholesale price of the product?
A) $3 B) $6 C) $12 D) $9
A monopolistically competitive firm in the long run will
A. have a demand curve tangent to its AC. B. have a demand curve below its AC. C. have a demand curve above its AC. D. operate where excessive profit can be achieved.
When consumption of a good or service produces benefits or costs that are not reflected in the market price for the good, this is known as a(n):
A. externality. B. common pool problem. C. nonexcludable resource. D. public good.
Inflation targeting requires monetary policymakers to rely heavily on the Phillips curve.
Answer the following statement true (T) or false (F)