If Tax Reduction and Simplification Are Effective, Then

question 31

Multiple Choice

If tax reduction and simplification are effective, then

• A)real wages will rise as labour supply and demand increase.
• B)saving and investment in new capital will increase.
• C)interest rates will rise in financial markets and demand for financial assets will fall.
• D)fewer new firms will be established, since existing firms will make more profit.
• E)government revenue will increase.

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Definitions:

Ambivalent Sexism

The pairing of hostile beliefs about women with benevolent but patronizing beliefs about them.

Hostile Beliefs

Negative attitudes or assumptions about others that are characterized by suspicion, antagonism, or animosity.

Benevolent Beliefs

Positive but patronizing beliefs and attitudes that can unintentionally perpetuate inequality, often viewed as harmless or even supportive by those who hold them.

Justification Suppression Model

The idea that people endorse and freely express stereotypes in part to justify their own negative affective reactions to outgroup members.