According to the classical system, a decrease in the income tax rate reduces the after-tax real wage
a. and shifts the labor supply schedule to the right.
b. and shifts the labor supply schedule to the left.
c. without shifting the labor supply schedule.
d. None of the above
A
Economics
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If a perfectly competitive market is in long-run equilibrium and there is a permanent decrease in demand, then
A) some firms will incur economic losses. B) firms are no longer maximizing profits. C) some firms must immediately exit. D) each firm must produce less output in the new long run equilibrium and earn less economic profit.
Economics
When additions of input to a fixed quantity of another input lead to progressively smaller increases in output, we say we are facing
A) accelerating returns. B) decreasing production. C) negative returns. D) diminishing returns.
Economics