It may seem paradoxical but according to ___________ when tax rates increase—at least beyond a certain rate—tax revenues fall and when tax rates fall, tax revenues increases
a. Professor Phillips and other neo-Keynesian economists
b. Professor Laffer and other supply-side economists
c. Professor Ricardo and other classical economists
d. Professor Barro and other rational expectations economists
e. Professor Samuelson and other Keynesian economists
B
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A large number of sellers all selling an identical product implies which of the following?
A) market chaos B) the inability of any seller to change the price of the product C) large losses incurred by all sellers D) horizontal market supply curves E) vertical market supply curves
Suppose Ford, GM, and Dodge make the majority of pick-up trucks sold in the United States If they all sell for approximately the same price, and Ford offers a $2,000 rebate on new truck sales, what can Ford expect to see?
a. an unprecedented increase in truck sales b. an immediate response by GM and Dodge c. a visit from the antitrust authorities of the government d. a revolution from Ford stockholders e. announcements by GM and Dodge that plans are underway to produce a much cheaper pick-up truck in six years