Suppose that the government of New York state promises to ...

[frankwu]

Suppose that the government of New York state promises to decrease taxes to a firm if it decides to stay in New York instead of moving to another state.
 
  This policy on the part of the state constitutes ________, to make the ________ of the firm remaining in New York. A) an incentive; marginal benefit exceed the marginal cost
  B) an incentive; marginal cost exceed the marginal benefit
  C) a command; marginal benefit exceed the marginal cost
  D) a command; marginal cost exceed the marginal benefit

Question 2

A key issue in the presidential election of 2012 between President Obama and Mr. Romney concerned tax rates. President Obama favored increasing taxes, especially on the rich. As a result of a tax increase
 
  A) the aggregate demand curve shifts leftward.
  B) the aggregate demand curve shifts rightward.
  C) the aggregate supply curve shifts leftward.
  D) the aggregate supply curve shifts rightward.

[beccamahon]

Answer to Question 1

A

Answer to Question 2

A

[frankwu]

Great answer, keep it coming

[jackie]

Thanks for the timely response, appreciate it