Q1. Elucidate Average costs are minimized when marginal costs are at their lowest point.
Q2. The "provide side" economics of the Regan administration (1981-1988) presumed that income tax cuts would stimulate incentives to work and thereby increases economic growth. Demonstrate this outcome with work-leisure diagram. Illustrate what does this outcome assume about the relative sizes of the income and substitution effects? Elucidate "The predicted increase in work-incentives" associated with the supply-side tax cuts might in fact be more relevant for women than for men".