The belief that a cut in the income tax rate must raise government income tax revenue has the implicit assumption that
A) higher income tax reduces the number of hours worked.
B) higher income tax increases the number of hours worked.
C) leisure is always an inferior good.
D) None of the above.
A
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Which of the following is a result of scarcity?
a. Costs are incurred in making choices. b. We attempt to utilize our resources as efficiently as possible. c. We must make choices between production possibilities. d. We are unable to produce all we would like to produce. e. All of these.
Many economists are critical of the minimum wage because they believe that it:
A. hurts the efforts of labor unions. B. reduces the number of available job opportunities. C. conflicts with policies designed to equalize the distribution of income. D. causes labor shortages in affected markets.