The abolition of income tax would probably ______ the number of workers in employment and _______ the equilibrium rate of unemployment?

Related Mcqs:

1. If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

   A. 30%
   B. 10%
   C. 70%
   D. 40%

2. Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?

   A. Rs 50000
   B. 20%
   C. 25%
   D. Rs 10000

3. Unemployment benefits may increase the unemployment rate because unemployment benefits ?

   A. encourage people to quit their jobs
   B. reduce the cost of job search
   C. enable people to quit searching for work
   D. reduce the benefits of additional job searching

4. The equilibrium rate of unemployment at any real wage, is the difference between ______ and ______?

   A. those willing to work at the going wage labour demand
   B. labour demand those willing to work at the going wage
   C. labor demand, labor supply
   D. those willing to work at the going wage labor supply

5. 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

6. 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

7. Policies to reduce unemployment by reducing union power, tax cuts, reductions in unemployment benefit and investment subsidies are examples of ?

   A. Keynesian policies
   B. Supply-side policies
   C. Monetarist Policies
   D. Classical policies

8. Unemployment resulting from real wages being above their equilibrium level is called _________ unemployment?

   A. natural
   B. frictional
   C. disequilibrium
   D. structural

9. A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?

   A. a proportional tax
   B. a regressive tax
   C. an equitable tax
   D. a progressive tax

10. Unemployment resulting from changes in the pattern of demand or supply in the economy is called _______ unemployment?

    A. regional
    B. technological
    C. structural
    D. demand-deficient