If a family earned an additional $6,000 and, as a consequence, sustained a reduction of $3,600 in government benefits, the implicit marginal tax rate for this family would be
a. zero.
b. 45 percent.
c. 60 percent.
d. 75 percent.
C
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The following are the equations for the supply and demand curves in the market for weezils: Demand: Qd= 20?2P Supply: Qs= 5 + 3P where Qdis the quantity demanded, Qsis the quantity supplied, and P is the price per weezil in dollars. Refer to Exhibit 4-1. According to the data given, when the market is in Equilibrium, how many weezils are sold?
A. 3 B. 5 C. 11 D. 14
If a measure of real GDP could include the value of leisure time, measured real GDP would increase
Indicate whether the statement is true or false
Two years ago, when her plant closed, Sue Ann McCoy was earning $18 an hour as an assembly line worker. She is unwilling to accept a large pay cut and has been out of work for three years. She is __________ unemployed.
A. frictionally B. structurally C. cyclically D. seasonally
Suppose that a price discriminating monopolist is able to divide its market into two groups. If the firm sells its product for $50 to the group whose customers have the most elastic demand, what price are they likely to charge to the group whose customers have the least elastic demand?
A. $50 B. more than $50 C. less than $50 D. The answer depends on the marginal revenue for that group.