A decrease in marginal tax rates will ________ after-tax profits and ________ more investment.
A. decrease; discourage
B. increase; discourage
C. decrease; encourage
D. increase; encourage
Answer: D
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Perfect price discrimination
a. increases profits to the firm. b. increases total surplus. c. decreases consumer surplus. d. All of the above are correct.
A worker association that bargains with employers over wages and working conditions is called
a. a strike. b. an oligopoly. c. a firm. d. a union.
Labor productivity is ________ divided by the ________
a. units of labor employed; total output b. total output; units of labor employed c. the wage rate; the price of the good or service produced d. units of labor employed; the wage rate
In 2005, the median income of renters was $26,317 and the median income of homeowners was $50,505. If imputed rent were added to household income or rent became deductible, the personal income tax would become
A. more progressive. B. more regressive. C. about proportional. D. less progressive.