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1) Most economists believe that it is impossible for government programs that be

ID: 1196475 • Letter: 1

Question

1) Most economists believe that it is impossible for government programs that benefit the rich also to benefit the poor. True or   False

2) . Behavioral economists and traditional economists both believe that everything matters. True or False

3) The demand for labor is derived from the demand for output. true or false

choose the correct answer:

The marginal income tax rate is:

always less than the average tax rate.

always equal to the average tax rate

the tax rate applied to all income.

the tax rate applied to an additional dollar of income.

always less than the average tax rate.

Explanation / Answer

1. False. Mainstream economists does agree that many policy measures benefit all.

2. False. Traditional economists say that models (which are essentially abstractions from reality) can explain everything. According to these economists, intricacies that are left out of models are those which do not matter much. On the other hand, behavioural economicsts advocate a more inclusive approach towards economic analysis.

3. True. As the demand for a firm's output rises, the firm's demand for labor also increases.

The marginal income tax rate is the tax rate applied to an additional dollar of income.