One objection to supply-side tax cuts is that demand-side changes
a. are smaller than supply-side changes.
b. and supply-side changes are about equal.
c. are more unpredictable than supply-side changes.
d. are larger than supply-side changes.
d
You might also like to view...
When the government intervenes in markets with bystanders, why does it do so?
a) to protect the interests of bystanders b) to make certain all benefits are received by market participants c) to better coordinate the actions of buyers and sellers d) to increase production when negative externalities are present
When the marginal social cost of the production of Good A is greater than the marginal private cost of the production of Good A, then
A) a competitive, unregulated market produces less than the efficient quantity of Good A. B) a competitive, unregulated market produces the efficient quantity of Good A. C) a competitive, unregulated market produces more than the efficient quantity of Good A. D) the government should levy a tax on the production of Good A that is equal to the horizontal distance between the two marginal cost curves.