“The government should reduce income taxes” – this statement is an example of positive economics.Question 28Select one:TrueFalse

Explain the reasons why governments impose taxes and considerwhether an increase in income tax is fairer than an increase in salestaxes.

Deciding what the distribution of income should be is an example of positive economicsGroup of answer choicesTrueFalse

Raising taxes too high can result in a slowdown of economic activity.TrueFalse

Which of the following is an effective research question for an academic setting?a.)Should taxes be lowered to drive economic growth?b.)What is the current income tax rate?c.)Are taxes good or bad for the economy?d.)What are the effects of lower taxes on economic growth?

Lower taxes create a multiplier effect in the economy. It leads to:Group of answer choicesincreases in aggregate demand.subsidies.decreases in prices.technological advances.