The changes contained in the 1986 and 1993 tax reforms
A. Reduced the variation in the nominal tax rates.
B. Resulted in a top marginal tax bracket of 85 percent.
C. Increased the variation in the effective tax rates.
D. Broadened the tax base and also raised tax rates.
Answer: D
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Most modern financial centers use computers to match buyers and sellers. This absence of personal contact contradicts the definition of a market
Indicate whether the statement is true or false
Max has allocated $100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If Max is currently at point e,
A) his MRS is less than the trade-off offered by the market. B) he is willing to give up more burger than he has to, given market prices. C) he is not maximizing his utility. D) All of the above.
The marginal cost of a good is: a. the difference between average total cost and average variable cost
b. the addition to total cost from producing one more unit of output. c. decreasing whenever average total cost is decreasing. d. always equal to average variable cost when the firm is maximizing profit.