Both Presidents Kennedy and Reagan Proposed Significant Cuts in Income

question 231

Multiple Choice

Both Presidents Kennedy and Reagan proposed significant cuts in income taxes.Opponents of these tax cut proposals argued that

• A)the tax cuts would benefit high-income taxpayers.
• B)cutting state sales taxes, rather than federal income taxes, would result in greater economic efficiency.
• C)while the tax cuts would result in greater economic efficiency, there was too much opposition to the tax cuts in Congress. As it turned out, Congress ultimately approved both tax cut proposals.
• D)it would be better to cut taxes on corporate profits.

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Definitions:

Shortage

In economics, a shortage occurs when the demand for a product or service exceeds its supply at a given price, often leading to increased prices and queuing.

Equilibrium

A state in which demand and supply are balanced, often resulting in a stable market condition where there is no tendency for change until external factors intervene.

Online Movie Rentals

The service of renting movies over the internet, allowing users to stream or download movies for a limited period of time.

Quantity Supplied

The level of goods or services available for sale by producers, who are willing and able to provide them, at a predetermined price over an agreed period.