Which of the following is a statement of positive economics?
a. The income tax reduces after-tax incomes of the rich
b. A reduction in tax rates makes the after-tax distribution of income fairer.
c. Tax rates ought to be reduced so that people will work more.
d. All of the above are statements of positive economics.
a
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Compared to a monopolistic competitor, a monopolist faces
A) a more elastic demand curve. B) a more inelastic demand curve. C) a demand curve that has a price elasticity coefficient of zero. D) a more elastic demand curve at higher prices and a more inelastic demand curve at lower prices.
Price elasticity of demand is calculated as
a. the percentage change in quantity demanded divided by the percentage change in price b. the percentage change in price divided by the percentage change in quantity demanded c. the absolute change in quantity demanded divided by the absolute change in price d. the absolute change in price divided by the absolute change in quantity demanded e. none of the above