Refer to the information provided in Table 19.8 below to answer the question(s) that follow.Table 19.8Total IncomeTotal Taxes$20,000 $2,000 40,000 4,800 60,000 9,000 80,000 16,000Related to the Economics in Practice on page 393: Refer to Table 19.8. If income increases from $20,000 to $40,000, the marginal tax rate is
A. 2%.
B. 12%.
C. 14%.
D. indeterminate from this information.
Answer: C
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According to the law of one price, if the price of Colombian coffee is 100 Colombian pesos per pound and the price of Brazilian coffee is 4 Brazilian reals per pound, then the exchange rate between the Colombian peso and the Brazilian real is
A) 40 pesos per real. B) 100 pesos per real. C) 25 pesos per real. D) 0.4 pesos per real.
After legislation is signed into law, the time it takes before actual fiscal stimulus is noticed is termed as: a. signal lag
b. implementation lag. c. impact lag. d. recognition lag.
If the CPI is 100 in the base year and 108 in the current year, how much did prices rise between the base year and the current year?
A) 8 percent B) 108 percent C) 1.08 percent D) 0.08 percent E) ?80 percent
Refer to the payoff matrix. Which of the following statements is true regarding the outcome of this game?
A. Both firms will price high, and this outcome is a prisoner's dilemma.
B. Both firms will price low, and this outcome is a prisoner's dilemma.
C. Both firms will price high, but this outcome is not a prisoner's dilemma.
D. Both firms will price low, but this outcome is not a prisoner's dilemma.