According to supply-side theory, a cut in taxes will tend to cause ________
A) a decline in the amount of total tax revenue collected
B) no change in the amount of total tax revenue collected
C) an increase in the amount of total tax revenue collected
D) individual workers to devote more time to leisure activities
C
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Economic profit that stems from entrepreneurship reflects
a. market power achieved through the use of public policy that restricts entry into a market. b. the ability of some individuals to recognize and undertake economically beneficial projects that have gone unnoticed by others. c. windfall gains due to unanticipated changes in weather. d. the influence of special interest groups on the market process.
Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, the equilibrium wage in the labor market for computer programmers
a. increased. b. decreased. c. did not change. d. It is not possible to determine the equilibrium wage.