According to supply-side economists, a cut in taxes will

a. cause people to spend more, causing the aggregate supply curve to shift to the right
b. act as a work incentive causing the aggregate supply curve to shift to the right
c. encourage people to work more to get more income to spend, causing the aggregate supply curve to shift to the left
d. encourage people to work more hours and be more productive, causing the society to move upward along the aggregate supply curve
e. increase private and reduce government spending so that aggregate demand remains fairly constant

B

Economics

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Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were:

A. $100,000 and its economic profits were zero. B. $200,000 and its economic profits were zero. C. $100,000 and its economic profits were $100,000. D. zero and its economic loss was $200,000.

Economics

A society can produce two goods: green tea and vitamin water. As this society moves down its production possibility frontier, producing more and more units of vitamin water, the opportunity cost of producing vitamin water increases. The society's production possibilities frontier will be

A. negatively sloped and bowed inward. B. positively sloped and bowed inward. C. positively sloped and bowed outward. D. negatively sloped and bowed outward.

Economics