The effective tax rate is the
A. highest income tax rate minus the lowest income tax rate.
B. share of income a household pays in taxes, minus any transfer payments.
C. share of income a household pays in taxes.
D. percentage of an additional dollar that a household would pay in taxes.
Answer: C
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A private cost is a cost of production that is
A) borne by the producer of a good. B) measured in marginal terms. C) borne by someone other than the producer of a good. D) measured in total terms.
The members of Federal Reserve district bank boards of directors who represent the public interest are known as
A) Class A directors. B) Class B directors. C) Class C directors. D) Class D directors.
Expansionary fiscal policy
A) raises Real GDP more in an open economy than in a closed economy. B) raises Real GDP more in a closed economy than in an open economy. C) raises Real GDP equally in an open economy and in a closed economy. D) does not affect Real GD"P in an open economy.
Each of these statements is true except
A. only a few million workers earn just the minimum wage. B. about a dozen states have minimum wage rates above the federal level. C. real wages are higher today than any time in our history. D. about one quarter of all workers do not earn enough to support their families.