According to supply-side economics, a cut in taxes will affect total tax revenue, because ________
A) the level of productivity should fall precipitously with a tax cut
B) a tax cut will be followed by an even larger decrease in government spending
C) of the resulting increase in saving
D) of the positive impact on the level of income
D
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An increase in price will lead to an increase in quantity supplied. This statement is
A) the law of supply. B) the law of demand. C) untrue always. D) a normative statement.
Suppose that in Slovakia one unit of labor can produce either 20 tons of wheat or 40 tons of soy and in Poland one unit of labor can produce either 40 tons of wheat or 20 tons of soy. If each country has two units of labor, which of the following consumption combinations can be attained only with trade?
A. Slovakia consumes 80 tons of soy. B. Poland consumes 40 tons of wheat and 20 tons of soy. C. Slovakia consumes 30 tons of both soy and wheat. D. Poland consumes 80 tons of wheat.