Supply-side economists believe that, in general,
A. by raising tax rates we can raise tax revenue.
B. by lowering tax rates we can raise tax revenue.
C. tax rates have very little effect on tax revenue.
D. tax rates are much too low.
B. by lowering tax rates we can raise tax revenue.
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Which of the following changes would NOT shift the aggregate demand curve?
A) a change in fiscal policy B) a change in monetary policy C) a change in expectations about future income D) an increase in technology
When demand is elastic,
A. an increase in price causes total revenue to rise. B. marginal revenue is negative. C. the percentage change in price exceeds the percentage change in quantity. D. both b and c E. none of the above
Refer to Figure 3-3. The figure above shows the supply and demand curves for two markets: the market for an original Picasso painting and the market for designer jeans. Which graph most likely represents which market?
A) Graph B represents the market for an original Picasso painting and Graph A represents the market for designer jeans. B) Graph A represents both the market for an original Picasso painting and designer jeans. C) Graph A represents the market for an original Picasso painting and Graph B represents the market for designer jeans. D) Graph B represents both the market for an original Picasso painting and designer jeans.
A tax that imposes a small excess burden relative to the tax revenue that it raises is
A) an efficient tax. B) a payroll tax. C) a sin tax. D) a FICA tax.