Based on the Laffer Curve, a cut in the tax rate from 100 percent to a rate lower than the maximum-revenue rate will:

Suppose a friend gives you two pieces of gum, and you decide to have one piece now and save the other for tomorrow. You do this because:

a. the total utility you get from the two pieces of gum will be higher tomorrow. b. the marginal utility you get from the second piece will be higher tomorrow. c. the marginal utility you get from the second piece will be higher today. d. the marginal utility you get from the first piece will be less today. e. the total utility you get from the two pieces will be less tomorrow.

Which of the following is a normative economic statement?

A) Rising global demand for diesel and heating oil has led to increases in the price of crude oil. B) With falling home prices and rising mortgage interest rates, the amount of foreclosures has increased. C) The federal government is considering raising the gasoline tax to promote the use of public transportation. D) Fashion designers should be allowed to copyright designs to promote innovation.