A decrease in the average tax rate, with the marginal tax rate held constant, will
A) increase the amount of labor supplied at any real wage.
B) not affect the amount of labor supplied at any real wage.
C) decrease the amount of labor supplied at any real wage.
D) increase the amount of labor supplied at any real wage if the average tax rate is above the marginal tax rate, but decrease the amount of labor supplied at any real wage if the average tax rate is below the marginal tax rate.
C
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According to supply-siders the main consequence of reducing tax rates is
A) increases aggregate demand and the price level. B) increases in aggregate supply. C) increases in aggregate supply and the price level. D) making the aggregate supply curve upward-sloping.
In a competitive market, one would expect to see
A) no advertising. B) false advertising. C) advertising only in the Sunday papers. D) minimal advertising.