Suppose a taxpayer has an income of $90,000 and a taxable income of $75,000, and pays $7,500 in taxes. If the taxpayer says he is taxed at a 10 percent tax rate, he is referring to the
A. Marginal tax rate.
B. Vertical tax rate.
C. Effective tax rate.
D. Nominal tax rate.
Answer: D
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
In 1930, the U.S. government attempted to help domestic firms that were harmed by the Great Depression by passing the Smoot-Hawley Tariff. In response to this tariff, other countries ________ and international trade ________
A) lowered their tariffs; thrived B) raised their tariffs; collapsed C) doubled their tariffs; became unrestricted D) eliminated tariffs; began to grow outside of the United States
Economic magnitudes measured at the prices actually paid are referred to as ________ magnitudes
A) "real" B) "actual" C) "nominal" D) "unadjusted" E) "gross"
The buyer's reservation price for a particular good or service is the:
A. same as the market price. B. largest price the buyer would be willing to pay for it. C. smallest price the buyer would be willing to pay for it. D. price the buyer must pay to ensure he or she gets it.