Reducing Personal Taxation Rates Might Not Raise Productive Output If

question 11

Multiple Choice

Reducing personal taxation rates might not raise productive output if:

• A) the marginal propensity to consume is high in the economy.
• B) individuals value leisure time more than they do income.
• C) there is a high level of income inequality in the economy.
• D) the government is running a trade surplus.

---

Definitions:

Impact Craters

Circular depressions on the surface of planets or moons formed by the collision with a meteorite, asteroid, or comet.

Large Canyons

Vast, deep ravines carved by river erosion or geological activity over millions of years.

Highly Reflective Liquid

A liquid substance that has a high capability to reflect light, often used in applications requiring visibility enhancement or thermal management.

Meteoroids

Small rocky or metallic bodies in outer space, which, upon entering the Earth's atmosphere, can create meteors or meteorites if they reach the ground.