What is the central tenet of supply-side economics?
A) Lowering tax rates will stimulate so much additional productive economic activity that the government will raise more in revenues than if tax rates were maintained at a higher level.
B) Modest adjustments can be made in the fiscal policy as long as the deficits never grow too large, and these adjustments will eventually pay off any budget shortfalls.
C) Progressive tax rates ensure that the economy is stimulated by the most productive elements of society and so all budget shortfalls will be paid off.
D) Large tax cuts coupled with increases in defense spending and continued high spending will eventually stimulate a flagging economy to generate surplus revenue.
E) Unexpected economic growth can be managed by offering large tax cuts and increased defense spending.
A
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Prior to the American Revolution and the creation of our current constitutional structure in the 1770s, the 13 colonial governments
A) were recognized as independent, sovereign entities by other world powers. B) mirrored those of England during the same period, including an elected House of Commons. C) had governors who were elected by the qualified voters. D) had direct representation in Parliament. E) did not exist.
The idea that the state itself, rather than other states or a non-state entity, can decide rules for a territory is the concept of
a. a new commitment to intervention. b. nonintervention norm. c. asymmetry of motivation favoring the coerced. d. state sovereignty.