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question 22

Multiple Choice

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Definitions:

Supply-side Economics

An economic theory that argues economic growth can be most effectively fostered by lowering taxes and decreasing regulation to increase production.

Tax Cuts

Reductions in the amount of taxes imposed by a government, often aimed at stimulating economic growth by increasing disposable income or encouraging investment.

Labor Supplied

The overall time period that workers consent to and can offer to work, in exchange for an established rate of pay.

Laffer Curve

A theoretical representation of the relationship between government revenue raised by taxation and all possible rates of taxation, suggesting that higher tax rates beyond a certain point actually decrease total revenue.