The result of the large tax cuts in the first Reagan Administration demonstrated very convincingly that Arthur Laffer was correct when he asserted that cuts in tax rates would increase tax revenue

Rita cooked a meal for her family which is worth $100 in the nearest eatery. What will be the impact of this activity on the calculation of GDP? Explain your answer

What will be an ideal response?

When a negative externality creates a market failure, that failure can be corrected by

a. setting price equal to private cost b. setting price equal to social cost c. setting price equal to the externality cost d. creating a positive externality of comparable value e. setting private cost equal to social cost