If the Government Cuts the Tax Rate, Workers Get to Keep

question 104

Multiple Choice

If the government cuts the tax rate, workers get to keep

• A) less of each additional dollar they earn, so work effort increases, and aggregate supply shifts right.
• B) less of each additional dollar they earn, so work effort decreases, and aggregate supply shifts left.
• C) more of each additional dollar they earn, so work effort increases, and aggregate supply shifts right.
• D) more of each additional dollar they earn, so work effort decreases, and aggregate supply shifts left.

Recognize the benefits of specialization and trade based on comparative advantage.

Analyze trade benefits between countries using comparative advantage.

Understand the role of exports in a country's GDP.

Identify the short-term benefits of protectionism for domestic producers.

---

Definitions:

Improper Refusal

A situation where a party unjustly rejects a contract offer or fails to perform an action required by the agreement.

Checking Account

A bank account that allows for both deposits and withdrawals and is primarily used for daily transactions.

Contractual Agreement

A legally binding agreement between two or more parties, outlined in a document, that is enforceable by law.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits in banks and thrift institutions for at least $250,000 per depositor, per bank.