Author Question: Suppose that the government of New York state promises to decrease taxes to a firm if it decides to ... (Read 87 times)

frankwu · **on:** Jun 29, 2018

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.