Proponents of cuts in income tax rates argue that when income tax rates are cut, workers have an incentive to increase their work hours. This argument is based on the assumption that
A) workers are irrational.
B) workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work.
C) the opportunity cost of working is negative.
D) the marginal cost of each additional work hour is not important to most workers.
E) workers make decisions based on the social interest.
B
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Which of the following is not a key economic question?
(A) How should it be ensured that goods and services are paid for? (B) Who consumes these goods and services? (C) How should these goods and services be produced? (D) What goods and services should be produced?
Television broadcasts are often given as examples of a public good. However, it is possible to code a broadcast so that only people who pay for the decoder box can view it. The use of a coded signal does what to a television broadcast?
A. Makes it nonrival B. Makes it nonexcludable C. Makes it rival D. Makes it excludable