If tax reduction and simplification are effective, then
A) fewer new firms will be established, since existing firms will make more profit.
B) saving and investment in new capital will increase.
C) interest rates will rise in financial markets and demand for financial assets falls.
D) real wages will rise as labor supply and demand increase.
B
Economics
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A monopoly displays productive efficiency because it produces at the lowest possible average total cost
a. True b. False Indicate whether the statement is true or false
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The basic proposition in international trade is that
A) trade is determined by absolute advantage. B) in the long run, imports are paid for by exports. C) everyone is made better off by free trade. D) fair trade is more important than free trade.
Economics