Differentiate between the average tax rate and the marginal tax rate
What will be an ideal response?
The average tax rate faced by a household is the total tax paid divided by total income earned. The marginal tax rate, on the other hand, refers to how much of the last dollar earned the household will pay in taxes.
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What is the difference between a normal good and an inferior good? Give an example of each
What will be an ideal response?
A production function is
a. a technique for determining the most profitable rate of output. b. the relationship between a combination of inputs and a quantity of output. c. an important factor in determining the shape of the long-run supply curve. d. All of these.
Stock options perfectly align management incentives with incentives of owners
Indicate whether the statement is true or false
Which of the following is the primary determinant of aggregate demand in the simplest Keynesian expenditure model?
a. consumption spending b. net exports c. investments d. government purchases