Studies of the income tax show that its burden as a percentage of income
A. remains about the same as income increases.
B. rises slightly as income rises.
C. initially increases and then decreases as income increases.
D. decreases as income rises.
Answer: B
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Employers and employees each pay a rate for Social Security that has risen from ________ to ________.
A. 15.3%; 5% B. 1%; 7.65% C. 1%; 5.45% D. 2%; 25%
Refer to the scenario above. The opportunity cost of producing one pound of oranges in Zeta is:
A) 1 pound of apples. B) 0.33 pounds of apples. C) 0.5 pounds of apples. D) 2 pounds of apples.
If labor supply and labor demand both increase, employment
a. and the real wage rate will both increase b. will increase but the real wage rate will fall c. will increase but the real wage rate will remain constant d. and the real wage rate will remain constant e. will increase but the effect on the real wage rate will depend on the magnitude of the shifts
Give an example that shows what happens to losses when some firms exit a monopolistically competitive industry.
What will be an ideal response?