According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

Related Mcqs:

1. According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

   A. aggregate supply will increase , aggregate demand will decrease
   B. aggregate supply will increase, aggregate output will increase and the price level will decrease
   C. aggregate supply will increase aggregate output will increase and the price level will increase
   D. both aggregate supply and demand will increase and the price level will increase

2. A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?

   A. Supply-side economics
   B. neo-Keynesian economists
   C. rational-expectations economists.
   D. new classical economists.

3. A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?

   A. supply side economists
   B. neo-Keynesian economists
   C. rational -expectations economists
   D. New classical economists

4. Suppose an industry emits a negative externality such a pollution and the possible methods to internalize the externality are command-and-control policies, pigovian taxes, and tradable pollution permits. If economists were to rank these methods for internalizing a negative externality based on efficiency ease of implementation and the incentive for the industry to further reduce pollution in the future, they would probably rank them in the following order (from most favored to least favored) ?

   A. Pigouvian taxes, command-and-control policies, tradable pollution permits.
   B. tradable pollution permits, Pigouvian taxes, command-and-control policies
   C. tradable pollution permits command-and-control policies, Pigovian taxes.
   D. command-and-control policies, tradable pollution permits, Pigovian taxes.
   E. They would all rank equally high because the same result can be obtained from any one of the policies

5. According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?

   A. there is no income effect when tax rates are changed
   B. the income effect of a wage change is greater than the substitution effect of a wage change.
   C. there is no substitution effect when tax rates are changed
   D. the substitution effect of a wage change is greater than the income effect of a wage change

6. According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?

   A. There is no income effect when tax rates are changed
   B. The income effect of a wage change is greater than the substitution effect of a wage change.
   C. There is no substitution effect when tax rates are changed
   D. The substitution effect of a wage change is greater than the income effect of a wage change

7. The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?

   A. indirect taxes
   B. direct taxes
   C. inelastic
   D. value-added tax

8. Except for taxes to offset ______ taxes are ______?

   A. imperfect competition popular
   B. externalities , distortionary
   C. inequality , a first best option
   D. poor health, unnecessary

9. Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

   A. None of these answers
   B. Disagree because they have different scientific judgments
   C. really don’t disagree at all. It just appears that they disagree
   D. disagree because they have different values

10. Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists ?

    A. really don’t disagree at all It just appears that they disagree.
    B. disagree because they have different values.
    C. none of these answers.
    D. disagree because they have different scientific judgments.