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

Supply-Side Policies 07/04/2023

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

Related Mcqs:

    The success of regional and urban policies has been limited by ?
    A. bureaucracy B. bad luck C. poor communications D. the low level of government grants and by the fact that some projects would have gone ahead anyway...
    Which of the following would be considered a supply-side policy ?
    A. An increase in the minimum wage that would cause consumer spending to increase B. investment tax credits for businesses to encourage investment C. Restrictions placed on the amount that can be imported. D. An increase in government spending that would lead to increased aggregate demand...
    Reaganomics was a radical shift in policy aimed at directly tackling ?
    A. the charities economy B. the demand side of the economy C. the underground economy D. the supply side of the country...
    Privatization is the transfer of ?
    A. publicly held stock to private individuals B. corporately owned businesses to individuals C. government businesses to the private sector. D. privately owned businesses to the government sector...
    A way of helping depressed regions by having lower wages lower local taxes and lower unemployment benefit has been suggested as ?
    A. market-orientated economists B. left-wing theorists C. Keynesian. D. new-Keynesian...

Leave a Reply

Your email address will not be published. Required fields are marked *