Critical assumptions behind the Laffer curve include
a. labor supply is inelastic.
b. investment is very responsive to higher savings and lower interest rates.
c. the economy is above the marginal tax rate that maximizes tax revenue.
d. both b and c.
e. all of the above.
D
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Which of the following leads to an increase in the quantity supplied but not an increase in supply?
A) an increase in the product's price B) a decrease in the costs of production C) an advance in the technology used to produce the good D) an increase in the number of firms producing the good or service E) an increase in the price of another product that the suppliers can produce
The use of resources in the most productive way possible to produce the goods and services that have the greatest total economic value to society is called:
A. economic quantity. B. innovation. C. efficiency. D. sustainability.