The following data represent a personal income tax schedule. Answer the next question on the basis of this information.Taxable IncomeTotal Tax$15,000$1,50030,0003,50060,0009,000120,00025,000The average tax rate at the $60,000 level of income is
A. 20.8%.
B. 11.6%.
C. 10.0%.
D. 15.0%.
Answer: D
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If a country experiences a negative growth rate in real GDP, it means:
A. people are producing less than they did the year before. B. the economy is shrinking. C. there are less goods to allocate in the economy than before. D. All of these statements are true.
Which of the following is a false statement about absolute and comparative advantage?
a. Comparative advantage is the basis for gains from trade. b. It is possible for one country to have the absolute advantage in all goods. c. It is possible for one country to have the comparative advantage in all goods. d. To find comparative advantage, you need to consider opportunity cost. e. All of these statements are true.
Which of the following is most likely to cause the demand curve in the capital market to shift leftward?
A) Government borrows to finance a war. B) All firms project higher future revenue streams for all of their projects. C) All firms project lower future revenue streams for all of their projects. D) Government institutes a high tax on savings.
________ is the phenomenon that unusual events are likely to be followed by more nearly normal ones.
A. Loss aversion B. Anchoring and adjustment C. Regression to the mean D. The present aim standard of rationality