A high marginal tax rate reduces work incentives
Indicate whether the statement is true or false
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As firms reduce their stock of capital, labor demand ________ and labor supply ________
A) decreases; stays the same B) decreases; decreases C) increases; stays the same D) increases; increases
At the Nash equilibrium of an oligopoly market:
A. only one firm is able to earn profits. B. each firm is making a profit-maximizing choice, regardless of the choices of its rivals. C. each firm is making a profit-maximizing choice given the choices of its rivals. D. each firm produces the same quantity.
You bake cookies. One day you double the time you spend, double the number of chocolate chips, flour, eggs, and all your other inputs, and bake twice as many cookies. Your cookie production function has
a. decreasing returns to scale. b. zero returns to scale. c. constant returns to scale. d. increasing returns to scale.
Assume the graph shown represents Kerri's budget constraint. If Kerri's income to spend on these two items increased, which of the following would be true?
A. Kerri's budget constraint would shift in, maintaining the same slope. B. Kerri's budget constraint would shift out, and get flatter. C. Kerri's budget constraint would shift out, and get steeper. D. Kerri's budget constraint would shift out, maintaining the same slope.