Author Question: The concept of Say's law can be summed up by the phrase, A) supply creates its own demand. B) ... (Read 36 times)

magmichele12 · **on:** Jun 29, 2018

The concept of Say's law can be summed up by the phrase,

A) supply creates its own demand.
B) demand creates its own supply.
C) supply and demand are equivalent concepts.
D) supply and demand are irrelevant concepts.

Question 2

A local government currently has a tax base of 4 billion and a tax rate of 5 percent. If the tax rate is increased to 6 percent, the tax base will decrease to 3.5 billion. If the goal is to maximize tax revenues the tax rate should be

A) lowered below 5 percent.
B) kept at 5 percent.
C) raised to 6 percent.
D) abolished.