The average tax rate is calculated as
A) total income divided by the total tax paid.
B) the change in income divided by the change in total tax paid.
C) total tax paid divided by total income.
D) the change in total tax paid divided by the change in income.
Answer: C) total tax paid divided by total income.
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In the U.S., time use data is collected on a national level by the:
a. Consumer Product Safety Commission b. Federal Reserve Board c. Dept. of Health and Human Services d. Bureau of Labor Statistics (BLS)
Efficiency is achieved
A) when output is being produced at a point inside a production possibilities curve. B) when producers are getting the maximum possible output from the available resources. C) when consumers are able to buy everything that they want. D) when prices of all goods and services go to zero.
In the above figure, S1 represents the supply curve which includes private costs, and S2 is the supply curve which includes social costs
If the firm is producing a product that has external costs that the firm does have to pay, what will be the equilibrium price and quantity? A) P1, Q4 B) P2, Q3 C) P4, Q1 D) P3, Q2
Other things equal, the steeper the slope of the aggregate supply curve, the more effective will be the expansionary fiscal policy
a. True b. False Indicate whether the statement is true or false