A Reduction in the Marginal Tax Rate Can Cause Potential

question 39

Multiple Choice

A reduction in the marginal tax rate can cause potential output to increase by:

• A)encouraging early entry into the labor market by reducing the incentive to earn advanced degrees.
• B)increasing after-tax wage rates and thus allowing workers to work fewer hours.
• C)increasing the incentive to invest more in education and earn advanced degrees.
• D)increasing government revenues and thus government expenditure.

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Definitions:

Requisition

A formal or official request made within an organization, typically for goods or services.

External Suppliers

Companies or individuals who provide products or services to another company but are not part of that company.

Authorize Buyers

The process of giving approval or permission to purchasers to conduct transactions, often within specific guidelines or limits.

Extranet

A private network that uses Internet protocols, network connectivity, and possibly the public telecommunication system to share a part of an organization's information or operations with suppliers, vendors, partners, customers, or other businesses.