U.S. data suggest that the U.S. economy is located where on the Laffer curve?
A. At the peak in tax revenue
B. On the right side, after the peak in tax revenue
C. On the left side, before the peak in tax revenue
D. The economy was on the right side before the 1980s and on the left side after 1980.
Answer: C
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Which of the following economies has the lowest ratio of Social Security benefits to GDP in 2006?
a. United Kingdom b. Netherlands c. Canada d. France e. United States
If the government imposes a per-unit tax on sales of an industry's product, then we would expect
A. the supply curve in that industry would shift to the left. B. the demand curve for that industry would shift to the right. C. the demand curve for that industry would shift to the left. D. the supply curve in that industry would shift to the right.
The longer the time frame involved, the more likely it is that the demand will be relatively
A. elastic. B. flat. C. inelastic. D. steep.
The supply of labor to one industry will decrease when
A. the price of leisure activities falls. B. workers receive better employment opportunities in other industries. C. the income effect dominates the substitution effect. D. the demand for labor falls in the industry.